Introduction of MDR on large value transactions to strengthen UPI's long-term sustainability: RBI

The Reserve Bank of India (RBI) has introduced a Merchandise Discount Rate (MDR) on large value transactions to support the long-term sustainability of the Unified Payments Interface (UPI). This move aims to ensure that the costs of processing transactions are fairly distributed among all participants in the UPI ecosystem. The RBI believes this will encourage continued investment in technology, infrastructure, and acceptance networks, ultimately benefiting the Indian economy. This decision could have a positive impact on the Indian markets, particularly those related to digital payments and f…

Why it matters

The introduction of MDR on large value transactions will help strengthen UPI's long-term sustainability. This move will support continued investment in technology and infrastructure, which could lead to increased adoption and growth of UPI.

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