Government plans to monitor merchants to prevent UPI fee burden on consumers

The record

Written from the 1 report below. Nothing here is unsourced.

The government is preparing a monitoring system to ensure merchants do not pass the new UPI fee on to consumers.
A 0.4 percent Merchant Discount Rate will apply to person-to-merchant UPI payments above ₹2,000 from October 15.
The fee will be paid by merchants and is capped at ₹300 for transactions of ₹75,000 or more.
The finance ministry has begun discussions with payment aggregators and other UPI stakeholders about the charge.
The ministry also rejected allegations that the fee was introduced under US pressure and said only about 4 percent of UPI transaction volume will be affected.

What to watch next

Whether merchants pass the MDR on to consumers after October 15
The monitoring system the finance ministry is building and what penalties it may include
Any impact of MDR on overall UPI transaction volumes

Who said what1

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Department of Financial Services

department under the Union finance ministry

1 quote · 1 outlet

“The allegation that MDR has been introduced under any external influence is patently false and misleading”
[1]Hindustan Times4d agoOpen at the quote ↗
In the article
…RuPay credit card. There is a clear policy of only allowing RuPay credit cards on UPI to enable RuPay credit cards to become the preferred choice of credit cards amongst users in India," the DFS said in a post on X. " The allegation that MDR has been introduced under any external influence is patently false and misleading ," it added. The assertion comes amid allegations by some Opposition parties, including the Congress, that the government had succumbed to US pressure in deciding to impose a 0.4 per cent MDR on UPI transactions above…

Heard on1

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Moneycontrol Podcast
Moneycontrol · 4d ago
5288: Govt weighs checks to prevent from passing MDR cost to customers, why Fintech funding may get a boost and more
0:34

Moneycontrol PodcastTranscript 1:40–2:14Full episode ↗

Now, UPI users may not have to pay MDR directly, but the government is keeping a close on eye whether the cost gets passed on to them indirectly. The government plans to closely monitor payment gateways and other platforms to ensure merchants do not pass MDR charges on to customers. Now, this is according to what we picked up from a top Finman official. MDR, the fee businesses pay to banks for processing digital payments, has been fixed at 0.4% for UPI transactions from October 15.

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English national1

All filed from India

Named India · United States · Indian National Congress · RuPay · Department of Financial Services · Ministry of Finance · National Payments Corporation of India · United States Trade Representative

Hindustan Times4d agoUPI fee burden won't fall on consumers, govt plans to track merchants: Report[1]English national· defensive

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