Zero-MDR leaves banks with no return on UPI merchant costs
Published · Updated
AI-generated summary of the coverage listed below: The new selective MDR framework for UPI has shifted the cost structure from zero to a model that does not reimburse banks for the expenses incurred in onboarding merchants. According to former DFS secretary M. Nagaraju, the change was prompted by the rapid rise in UPI transaction volumes and the growing gap between the ecosystem’s operating costs and government support. The reform aims to make digital payments more sustainable while raising questions about merchant fees, consumer charges, and regulatory oversight.
Covered by 2 outlets across the spectrum: 0% left, 50% center, 50% right.
Who is covering this story
- Center (1): Mint
- Right-leaning (1): Times Now
Sources
- Zero-MDR gave banks no return on UPI merchant onboarding costs: Ex-DFS secretary M. Nagaraju — Mint (center)
- UPI’s New MDR Regime: When Changing the Cost of Payments Changes the Legal Landscape — Times Now (right-leaning)