The Indian Finance Ministry denies that pressure from American credit card companies influenced the decision to impose a Merchant Discount Rate (MDR) on UPI transactions.
Reader brief
Through the Reader lens: The Indian Ministry of Finance has dismissed opposition allegations that recent decisions regarding Merchant Discount Rate (MDR) fees on UPI transactions were driven by pressure from US-based credit card companies. The government clarified that the MDR implementation is intended to strengthen the domestic UPI ecosystem and ensure the sustainability of digital payments. Additionally, the government denied reports that GST would be applied to these MDR fees.
What to watch next
- Impact of MDR fees on the adoption of small digital payment providers
- Ongoing trade negotiations regarding UPI market access for US payment providers
- Monitoring of the 30 percent market share limit for third-party UPI applications
Sources1
All filed from IndiaNamed India · United States · IN-KA · Google Pay · Mastercard · PhonePe · RuPay · Visa · Ministry of Finance · United States Trade Representative