IGI Logo

Below the Quote on NPCI announced MDR on UPI by Reeju Datta, co-founder, Cashfree

"The finalised MDR on UPI P2M transactions is a welcome step. At 0.4% above Rs 2,000, capped at Rs 300 for transactions over Rs 75,000, it stays well below card fees and leaves more than 95% of P2M volume, along with all P2P transfers, untouched. 

With zero MDR, adoption of UPI  increased significantly across smaller merchants, changing the way India pays. However, running UPI involved significant costs. A calibrated MDR finally gives the ecosystem a way to fund that directly, and to invest in areas like fraud prevention, acceptance infrastructure in smaller towns etc. It will also incentive newer players to enter the market and innovate for different use cases which in turn would increase adoption for UPI further.”

Above views are of the author and not of the website kindly read disclaimer