Parliamentary panel urges MDR charges on high value UPI
A parliamentary committee wants banks and payment apps to start charging fees (called the Merchant Discount Rate, or MDR) on high-value UPI transactions soon.
This follows new changes in law that let them do so, aiming to help payment providers earn sustainably and reduce the government's subsidy load.
Bhartruhari Mahtab warns 0 MDR unsustainable
Right now, the zero-MDR policy means payment services run at a loss: government subsidies only cover about 10% of their actual costs.
The committee, chaired by senior BJP leader Bhartruhari Mahtab and led by the Standing Committee on Finance, says this isn't enough for long-term growth or better security.
They warn that delaying MDR charges could hurt digital payments and push providers to rely too much on limited government funding.
The new system is meant to keep digital payments reliable and thriving in India.