The stock has been in the spotlight in recent months amid reports suggesting that the Indian government may consider restoring merchant charges on UPI transactions. However, the Finance Ministry dispensed the speech as “False, Baseless, and Misleading,” Stating that no mdr will be charged on UPI Payments.
“Speculation and claims that the mdr will be charged on UPI transactions are complete False, BASELESS, BASELESS, And Misleading. Suspicion Among Our Citizens, “Finance ministry said in a post on x.
“The government remains fully committed to promoting digital payments via upi,” it added.
This response came after reports in a section of media claimed that the center is considering reintroducing mdr on UPI transactions Above 3,000 in a move to support banks and payment service providers.
In March, The Payments Council of India (PCI), REPRESTING 180 Non-Banking Payment Players, Urged The Government to Reconsider The Zero MDR Policy for UPI and Rupay Debit Card Transactions, Civiling Sustainability Concerns. The policy, in place since January 2020, has strained the ecosystem despite a government innocent of 1,500 Crore – Far Short of the 10,000 Crore Annual Operational Cost.
To address this, pci proposed reintroducing mdr for rupay debit cards and a 0.3% mdr on UPI for large merchants. Meanwhile, UPI Continues to Dominate India’s Digital Payments, Contributing 80% of Retail Transactions in FY24, with 131 billion transactions valued over 200 Lakh Crore. January 2025 marked a monthly high with 16.99 billion transactions 23.48 Lakh Crore.
Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.
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