UPI MDR: 75% Merchants to Remain Unaffected by Charges on Transactions Above Rs 2,000, Says NPCI Chief
Asbe said most merchants are unlikely to pass UPI charges to customers, with about 75% of transaction value outside the charging framework.
- On Thursday, NPCI Managing Director and CEO Dilip Asbe told the 13th SBI Banking & Economics Conclave that only 10% of overall UPI transaction value risks charges being passed to consumers under the merchant discount rate policy.
- Asbe noted that 96% of transaction volume and around 75 per cent of overall UPI value remain outside the charging framework, ensuring no policy impact for the vast majority of payments.
- About 80% of MDR collection stems from businesses with annual turnover exceeding ₹1,000 crore; these large corporates already accept credit cards and are likely to absorb the proposed UPI costs.
- To accelerate UPI acceptance among small merchants, the NPCI will create a new fund potentially reaching ₹3,000 crore over three years, financed by 5% of the MDR collected.
- UPI transaction value is expected to grow by around 10 per cent this year, while transaction volumes could increase by 15-17 per cent as the system expands toward a billion users.
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NPCI Chief Clarifies UPI Transaction Charges Impact On Consumers
NPCI chief Dilip Asbe stated that only about 10% of UPI transaction value might see charges passed to consumers, primarily from large corporates already absorbing credit card fees. He highlighted that 80% of Merchant Discount Rate (MDR) would come from businesses with over Rs 1,000 crore turnover, and a significant portion of transactions will remain charge-free. A new fund, potentially Rs 3,000 crore, will also be created from MDR collection to…
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Consumer impact of UPI MDR charges limited to around 10 pc of overall value: NPCI CEO
The risk of consumers bearing the cost of UPI Merchant Discount Rate (MDR) charges is limited to around 10 per cent of the overall value on which MDR is collected, NPCI Managing Director and CEO Dilip Asbe said, adding that a majority of merchants are unlikely to pass the charges on to customers.
'Only 10% of UPI transaction value risks MDR charges' Corporates to absorb most proposed fees: NPCI - News Today
Only about 10 per cent of the overall value of UPI transactions could face the risk of charges being passed on to consumers under the merchant discount rate (MDR), with large corporates, which already accept credit cards, The post ‘Only 10% of UPI transaction value risks MDR charges’ Corporates to absorb most proposed fees: NPCI appeared first on News Today | First with the news.
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