UPI MDR to Fund Innovation, Aid Small Merchants

Times of India · business

NPCI's Dilip Asbe explained that the new MDR structure will fund innovation and protect small merchants. While zero MDR during Covid boosted adoption, growth slowed. The new fees, lower than card charges, apply to larger merchants, with exemptions for consumers and small businesses. NPCI anticipates Rs 13,000-15,000 crore in the first year, with 5% supporting small merchants to encourage digital payment expansion.