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Policy● Neutral for Indian equities
Finance Ministry to talk to IBA to ensure MDR is not passed on to consumers
The brief
- Finance Ministry will ask IBA to ensure MDR is not passed on to consumers
- An outreach programme is planned to clear doubts and support a smooth rollout
- A cap on passing MDR to consumers may affect banks’ UPI transaction costs
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UPI MDR rollout and consumer protection
SBI plans to charge MDR on UPI merchant payments above ₹2,000 from October 15, while officials say MDR collections will not cover UPI’s full operating costs and the government and banks will decide a continuing subsidy. The Finance Minister says the fee will be borne within the merchant-payment ecosystem, not passed to consumers; the government is also discussing safeguards with banks.
Friday, 25 September
- Finance Ministry to talk to IBA to ensure MDR is not passed on to consumers