MDR will not cover UPI costs as proposed merchant fee falls short of Rs 21,000 crore
A 0.4 per cent merchant discount rate (MDR) is unlikely to help recover the entire spend by the UPI stakeholders, NPCI CEO Dilip Asbe said at the SBI Banking and Economic Conclave in Mumbai on Thursday.
“According to data submitted by the RBI about a year back, the total cost of running UPI at scale is about ₹21,000 crore. While we cannot fully recover the cost, at least we should reasonably recover an amount that kind of incentivises market players to reinvest and grow UPI. So we thought about ₹13,000-15,000 crore could be a reasonable value in year one to recover from the ecosystem,” Asbe said.
