The Indian government is considering a proposal to reintroduce merchant discount rate (MDR) charges on Unified Payments Interface (UPI) and RuPay debit card transactions, specifically targeting larger merchants, according to a recent ET report. MDR is a fee merchants pay to banks for processing real-time digital payments. At present, no MDR applies to UPI or RuPay debit card transactions. However, banking industry representatives have formally submitted a request to the Union government, recommending that these charges be reinstated for businesses with an annual Goods and Services Tax (GST)-linked turnover exceeding Rs 40 lakh. Under the proposal, the government would adopt a tiered pricing system, with higher charges for larger merchants and continued zero fees for smaller players. Businesses with an annual turnover below Rs 40 lakh would remain exempt from MDR charges, the report said. #upi #rupay #payments #banks #government #indianstartupnews
Bringing back MDR on UPI could be a big shift. Small businesses have embraced UPI because it’s free, and adding charges might push them back to cash. While banks need sustainable revenue, there has to be a balance so digital payments keep growing. Here are some alternative approaches that could benefit both merchants and banks: 1. Instead of charging a fee on every transaction, why not offer merchants a simple monthly subscription? 2. Offer value-added services, such as UPI-based credit with interest in short- and long-term loans. 3. Leverage ad-based monetization, including merchant promotions, in-app advertisements, and cashback-driven campaigns rather than direct transaction fees. 4. A small fee could be applied to transactions exceeding a specified threshold.
So, UK can loot major businesses in countries, using linked digital apps with UK, Data theft of Businesses, Companies, Individuals, for Major lootings by UK?
First they started charging for UPI payment of 2000 or more from Rupay Credit Card, now looking for Rupay debit card
Sarkar ne bola tha “UPI is free,” ab kahani me naya twist aa gaya! Disagree ❌ Reintroducing MDR on UPI and RuPay transactions could discourage digital payments, especially for mid-sized businesses. While banks seek revenue, the move might push merchants back to cash transactions defeating the purpose of a “Digital India.”
Wouldn't this kind of bifurcation lead to merchants discouraging online payments, so as to stay in the 'zero charges bracket' and start accepting more, in cash payments? Or the merchants may start passing down these charges onto the customers itself.
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hotel professional at running a restaurnt
4hYes govt wants to squeeze every penny what we earn and pay comforts and freebies to political funding and their cronies