IIT Bombay report urges UPI MDR rationalisation
In short
An IIT Bombay report said the UPI MDR system needs to be changed carefully. The report argued that UPI has helped users and the economy a lot, and that the benefits are bigger than the extra money from merchant fees.
It warned that public trust could be harmed if the plan is used as written. No final government decision was stated in the available reporting.
What the reporting says
An IIT Bombay report titled ‘UPI at a Crossroads: Reintroducing the MDR’ said the UPI merchant discount rate framework needs rationalisation to protect public trust. The report said UPI has delivered major convenience and productivity gains, and that its long-term economic benefits outweigh the incremental merchant-fee income. It warned that trust could weaken if the proposed MDR framework is implemented in its present form, but it did not state any final policy decision.
Why it matters
The IIT Bombay report puts the UPI merchant discount rate debate back in focus by arguing that any new MDR framework should not damage trust in the payments system. That matters for users, merchants, and payment companies because UPI is a major digital infrastructure in India. The report is advisory; no policy change or implementation timing was stated.