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Policy · Updated 11 Oct, 05:47 pm IST

IIT Bombay says UPI MDR framework must be rationalised to protect trust

Image: ET Tech

Why it matters for readers: It matters because the report warns fees could reduce trust in a widely used national payments system.

  • IIT Bombay's report cautions that implementing the proposed MDR framework as-is could undermine public trust in UPI.1
  • The report argues UPI's long‑term economic benefits outweigh incremental income from merchant fees.1
  • It recommends restricting MDR charges to merchants with annual turnover above Rs 50 crore, which would cover about 90% of NPCI's proposed MDR revenue.1
  • The report also notes NPCI could introduce a reasonable charge on e‑commerce merchants for online person‑to‑merchant UPI transactions within the legal mandate.1
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