Banks revamp UPI strategy as 40bps MDR returns October 15
Business
Banks are switching up their UPI strategies as the merchant discount rate (MDR) returns:
Starting October 15, eligible merchant payments above ₹2,000 will attract a 40-basis-point MDR.
This change could bring in big money for banks and is pushing them to finally invest more in better payment tech.
Banks upgrade payments, India outsourcing threatened
With new revenue on the table, banks are set to improve payment systems, especially for agent-led services.
On another front, India's IT industry is feeling the heat as tech giants like Google and Meta move from outsourcing to AI and automation, putting jobs that rely on routine tasks at risk and making traditional outsourcing less secure for the future.