RBI Governor calls UPI merchant charges proposal ‘very premature’, says ‘someone has to pay’

Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday that it was ‘very premature’ to make remark on the government’s proposed changes with regard to merchant charges on digital payments, while emphasizing that maintaining and growing India’s digital payments framework comes at a price that ‘someone has to pay.’

Malhotra responded to a question about reports that the government might permit Merchant Discount Rate (MDR) on specific UPI transactions, such as those involving large retailers or those exceeding a specific value, by stating that the centre was presently working on the proposed amendment and refused to comment on its potential details.