Indian Bank acts to protect customers from new UPI MDR
Indian Bank is making sure the new Merchant Discount Rate (MDR) on UPI payments doesn't end up costing regular users.
They're focusing on creating awareness among customers so they can raise a complaint, while also sensitizing merchants about the benefits derived from promoting UPI, while also using tech tools to keep everything fair.
Binod Kumar details API and reporting
MD and CEO Binod Kumar shared that customers will have an easy way to report if a merchant tries to sneak in extra charges.
The bank is developing an API-based system to spot any weird transaction patterns, and might even consider waiving part of the MDR for merchants where Indian Bank is the acquiring bank, based on transaction volumes and a cost-benefit assessment.
Even with these changes, Indian Bank expects only a small financial impact, actually projecting around ₹100 crore in income from the new fees.