Proposed merchant discount rate (MDR) framework for Unified Payments Interface (UPI) transactions needs to be rationalised before implementation to protect public trust in the digital payments system, according to a report.
UPI, a public digital infrastructure, has generated significant convenience for users and productivity gains for the economy, with its long-term economic benefits outweighing the incremental income that could accrue from merchant transaction fees, the report titled 'UPI at a Crossroads: Reintroducing the MDR' released by IIT Bombay said.
