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'MDR Charged Only From Small Fraction': NPCI Defends UPI Transaction Fees in SC Affidavit
Sentiment: NeutralHigh Priority
What Happened?
The NPCI has defended the newly imposed UPI transaction fees in an affidavit to the Supreme Court, stating that only a small fraction of transactions will incur charges. The organization argues that concerns about increased costs for small merchants are unfounded.
Key points
- NPCI's affidavit states that only about 4% of person-to-merchant transactions exceeding INR 2,000 will incur MDR charges.
- Merchants earning up to INR 1 lakh per month through UPI QR codes will not pay any MDR.
- A dedicated fund financed by a 5% contribution from MDR collections aims to promote UPI adoption among small merchants.
- The Supreme Court previously refused to stay the government's decision to impose UPI charges.
- The petitioner argues that the new MDR framework lacks public consultation and transparency.
Key insights
- If upheld, the MDR charges may set a precedent for future transaction fees in digital payments.
- Small merchants may benefit from the dedicated fund aimed at promoting UPI adoption.
- The Supreme Court's decision could impact public trust in digital payment systems.
Why it matters
The outcome of this case could influence the future of digital payment fees in India.
Source
Times Now
