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Restore MDR on UPI and RuPay transactions, banks, payment firms ask Centre: Report

The proposal includes “discounted MDR on RuPay to make it competitive with Visa and Mastercard” bank cards, and flat, “slab-based MDR on UPI transactions.”

January 11, 2021 / 10:31 AM IST
Representative image

Representative image

Banks and digital payment platforms have urged the Centre to reconsider Merchant Discount Rate (MDR) on online transactions done via Unified Payments Interface (UPI) and RuPay debit cards which was waived in 2019.

Industry body, the Indian Banks’ Association (IBA) and payments forums met with officials from the Finance and IT Ministries as part of pre-Budget consultations and asked for MDR on UPI and RuPay transactions to be restored, sources told The Economic Times.

An executive told the paper that restoring MDR fee was “a representation made to the Finance Ministry as part of the budget consultation process.”

Moneycontrol could not independently verify the report.