A proposed 0.4% merchant discount rate on UPI transactions above a threshold 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-growing digital payments infrastructure. The proposal comes as policymakers weigh the long-term economics of UPI, which has scaled rapidly on the back of zero-cost consumer usage but continues to impose rising operating costs on banks and payment networks.
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"Proposed 0.4% UPI MDR Could Recover Rs 15,000 Crore in Year One, Says NPCI Chief"
A proposed 0.4% merchant discount rate on UPI transactions above a threshold 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-growing digital payments infrastructure. The proposal comes as policymakers weigh the long-term economics of UPI, which has scaled rapidly on the back of zero-cost consumer usage but continues to impose rising operating costs on banks and payment networks.
Proposed 0.4% UPI MDR Could Recover Rs 15,000 Crore in Year One, Says NPCI Chief
R
RDU Global Wire
BFSI & Fintech Desk
New Delhi, India Just now (10:00 AM IST)•5 min read
A proposed 0.4% merchant discount rate on UPI transactions above a threshold 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-growing digital payments infrastructure. The proposal comes as policymakers weigh the long-term economics of UPI, which has scaled rapidly on the back of zero-cost consumer usage but continues to impose rising operating costs on banks and payment networks.
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