MDR on UPI won’t drive users back to cash transactions: RBI Deputy Governor

The implementation of the merchant discount rate (MDR) on the Unified Payments Interface (UPI) is not expected to drive users back to cash transactions, a concern which is expressed in certain quarters, stated RBI Deputy Governor S C Murmu.

MDR will assist the payments ecosystem in recouping its expenses, he said, noting that although digital payments have gradually supplanted cash as a transaction method, cash still maintains its function as a value store.