From The Hindu
Center-Left Owned by Kasturi & Sons Ltd.NPCI says MDR charge has been imposed to save the UPI ecosystem from turning ouroboric
What's behind this
NPCI said the merchant discount rate (MDR) charge has been introduced to protect the UPI ecosystem from becoming ouroboric. It told the Supreme Court that zero MDR is no longer sustainable because the rapid growth of the system creates greater demands on security, resilience and infrastructure. The MDR will apply only to person‑to‑merchant (P2M) transactions above ₹2,000, affecting roughly four percent of merchant activity, while person‑to‑person and low‑value P2M payments will remain free. NPCI has also argued that merchants cannot pass the charge on to customers.
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What each side is saying
One outlet's own words from each side of the spectrum. Quoted, not summarised.
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left · 1 outlet
Zero MDR is no longer sustainable; the magnitude of growth places correspondingly greater demands on the security, resilience, and infrastructural capacity of the system, NCPI tells SC
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right · 1 outlet
MDR on P2M transactions above ₹2,000 would apply to only about 4 per cent of merchant activity while keeping P2P and low-value P2M payments free
RSS excerpt
Zero MDR is no longer sustainable; the magnitude of growth places correspondingly greater demands on the security, resilience, and infrastructural capacity of the system, NCPI tells SC
