RBI governor says UPI MDR unlikely to hit volumes
In short
RBI Governor Sanjay Malhotra said a small MDR on some UPI merchant payments should not hurt transaction volumes much. The charge starts on October 15, and the summaries say it applies to select merchant transactions above ₹2,000.
Consumers will not be charged. The market impact on UPI use is still uncertain, but the RBI does not expect a big drop.
What the reporting says
RBI Governor Sanjay Malhotra said a small MDR on select UPI merchant payments is unlikely to materially affect transaction volumes as the charge takes effect from October 15. Publisher summaries add that the fee applies to select merchant transactions above ₹2,000 and that consumers will not be charged. The immediate consequence is a new merchant fee framework, while any future impact on UPI volumes remains uncertain.
Why it matters
RBI Governor Sanjay Malhotra said a small MDR on select UPI payments is unlikely to materially affect transaction volumes when the new charge takes effect on October 15. The publisher summaries say the fee applies to select merchant transactions above ₹2,000 and that consumers will not be charged. This matters for merchants, payment networks, and UPI usage, but the actual volume impact is not yet known.