Panel pushes early UPI MDR on high value transactions

The Parliamentary Standing Committee on Finance has called for the early implementation of the tiered Merchant Discount Rate (MDR) framework for UPI transactions, warning that delays could leave payment service providers dependent on inadequate government subsidies and weaken investments in payment infrastructure.

“In the view of the Committee, while statutory enablement now exists to permit calibrated MDR on high-value transactions, any delay in notifying and operationalising this framework leaves payment service providers heavily dependent on inadequate subsidies,