UPI MDR Charge: National Payments Corporation of India (NPCI) has postponed the decision on implementing Merchant Discount Rate (MDR) charge on UPI payments till after Diwali. NPCI said in a statement issued on October 13 that this charge will be implemented immediately after Diwali on UPI payments made to selected shopkeepers. However, its new date will be announced later. Let us tell you that earlier there were preparations to implement it from Thursday this week.
Why was the decision postponed
The biggest reason for postponing the decision to impose MDR charge on UPI till Diwali was the fear of additional financial burden on customers and businessmen during festivals. Shopping increases during Diwali, hence implementing new charges could increase costs for traders and concerns were raised that it would impact customers as well. Apart from this, merchant organizations, fintech companies and payment companies had also demanded postponement of this decision. He said that there is still a need for clarity regarding the different rates and rules of MDR. Some businessmen also feared that due to the additional cost, shopkeepers might give priority to cash instead of UPI. Payment companies also needed time to make changes in their systems.
What was the first decision?
Let us tell you that last month the UPI Steering Committee had fixed 0.4 percent MDR charge on select merchant transactions of more than Rs 2,000. If you understand in simple language, there is a charge of Rs 8 on payment of Rs 2,000 and Rs 40 on payment of Rs 10,000. This fee is taken from shopkeepers for processing digital payments. However, it is feared that some shopkeepers may pass the burden on the customers. At the same time, on October 8, the Finance Minister had said that the decision regarding MDR on UPI has to be taken by the parties associated with the payment ecosystem.
The news is updating…
Source: www.livehindustan.com
