The introduction of a Merchant Discount Rate (MDR) on larger UPI merchant payments is unlikely to trigger a shift back towards cash, Reserve Bank of India Deputy Governor Shirish Chandra Murmu said on Friday, playing down concerns that the charge could reverse some of the gains made by digital payments.
From October 15, a 0.4% MDR will apply to person-to-merchant UPI transactions above Rs 2,000. Merchants, rather than consumers, will bear the charge, which will be capped at Rs 300 for transactions worth Rs 75,000 or more.
