A proposed 0.4% merchant discount rate on UPI transactions could generate as much as Rs 15,000 crore in the first year, according to NPCI chief Dilip Asbe, reviving debate over how India should fund its fast-expanding digital payments infrastructure. The proposal comes as policymakers weigh the trade-off between keeping UPI free for users and creating a sustainable revenue model for banks, payment firms and the broader ecosystem.
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"NPCI Chief Says 0.4% UPI MDR Could Recover Rs 15,000 Crore in First Year"
A proposed 0.4% merchant discount rate on UPI transactions could generate as much as Rs 15,000 crore in the first year, according to NPCI chief Dilip Asbe, reviving debate over how India should fund its fast-expanding digital payments infrastructure. The proposal comes as policymakers weigh the trade-off between keeping UPI free for users and creating a sustainable revenue model for banks, payment firms and the broader ecosystem.
NPCI Chief Says 0.4% UPI MDR Could Recover Rs 15,000 Crore in First Year
R
RDU Global Wire
BFSI & Fintech Desk
New Delhi, India Just now (02:58 PM IST)•5 min read
A proposed 0.4% merchant discount rate on UPI transactions could generate as much as Rs 15,000 crore in the first year, according to NPCI chief Dilip Asbe, reviving debate over how India should fund its fast-expanding digital payments infrastructure. The proposal comes as policymakers weigh the trade-off between keeping UPI free for users and creating a sustainable revenue model for banks, payment firms and the broader ecosystem.
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