UPI Fee Burden Won't Fall on Consumers, Govt Plans to Track Merchants: Report
RBI says the charge will affect only 4% of large merchants and will help fund new services while keeping UPI free for most users.
- The Centre clarified on Thursday that the UPI MDR policy launches October 15, requiring only 4% of large merchants to pay a 0.4% fee while 98% of digital payment users remain exempt from charges.
- To enhance digital payment security and sustainability, The Reserve Bank stated that collecting MDR on high-value transactions will reduce losses for service providers, with a flat ₹5 fee ensuring utility and fuel retail services remain low-cost.
- Telangana LPG Distributors Association President Jagan Mohan Reddy expressed concerns that delivery personnel collecting payments on individual UPI accounts may trigger the charge on bulk remittances to distributors starting October 15.
- Congress leader Rahul Gandhi urged Prime Minister Narendra Modi to roll back what he termed a "UPI tax," though Union Minister Jyotiraditya Scindia rejected the criticism, asserting Gandhi fails to think logically.
- Officials argue the policy strengthens UPI, the world's largest digital payment platform, and is essential to reducing reliance on cash; the charge on large merchants will fund expansion to millions of currently unbanked users.
23 Articles
23 Articles
Rediff.com IPO: New UPI MDR rules open an additional revenue stream for the company: Report
Rediff.com stands to benefit from the government's new Merchant Discount Rate (MDR) on select UPI transactions, potentially enhancing its revenue as it prepares for market listing. The MDR changes, effective from October 15, aim to charge large ticket merchants while keeping most payments free.
Paytm Gains from ‘dual Levers’ of Consumer, Merchant Monetisation Under UPI MDR
Get latest articles and stories on Business at LatestLY. Paytm could benefit from the new UPI merchant discount rate (MDR) framework through its presence across both consumer and merchant payments, with brokerages estimating a sizeable revenue opportunity and sharply raising their earnings estimates for the company. Business News | Paytm Gains from ‘dual Levers’ of Consumer, Merchant Monetisation Under UPI MDR.
UPI MDR Flat Rate Model: The government has not set a uniform MDR for UPI payments above Rs 2,000. A flat rate model has been implemented for certain payments, where a fixed MDR will be charged.
Mayawati terms UPI fee ‘capitalist profiteering attitude’
Lucknow: Bahujan Samaj Party chief Mayawati termed the Centre’s move to introduce a 0.4 per cent fee on Unified Payments Interface (UPI) merchant transfers worth more than Rs 2,000 from October 15 as, prima facie, a “capitalist profiteering attitude” that recovers tax from the people with both hands. In a post on X in Hindi … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stories on WhatsApp & …
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