Will you pay for UPI? RBI Governor says ‘costs have to be paid’, but calls MDR debate premature

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said it was “premature” to speculate on the future of the merchant discount rate (MDR) for digital payments, including UPI, as the government is still amending laws governing the country’s payments ecosystem.

Responding to questions on whether the proposed legal changes could revive MDR, Malhotra urged caution. “Right now the government is bringing the amendment. Costs have to be paid by someone. We all want this public infrastructure to strengthen and become more efficient. That continues to be our focus. Let us wait and watch for further developments,” he said.