RBI says UPI MDR talks are premature as merchant-fee proposal remains under consideration
A proposed 0.25%-0.4% MDR on business UPI payments above ₹2,000 could alter checkout costs for merchants while opening a revenue stream for banks and payment aggregators. RBI Governor Sanjay Malhotra said discussion is premature amid proposed PSSA amendments.
RBI Governor Sanjay Malhotra said discussion on UPI MDR is premature as the government considers PSSA amendments. A proposed fee on business UPI payments above ₹2,000 could raise merchant payment costs while creating monetisation opportunities for banks and payment aggregators.
Why this matters
The proposed UPI merchant fee extends RBI’s recent payments and currency agenda, following its target to roll out polymer currency notes in early FY28.
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