Slamming Finance Minister Nirmala Sitharaman’s announcement that digital transactions made using RuPay credit cards or UPI QR codes will not face Merchant Discount Rate (MDR) from January 1, the Payments Council of India (PCI) on Monday said the move would kill the industry and make the business model unviable.
The Department of Revenue will soon notify RuPay and UPI as the prescribed mode of payment for digital transactions without any MDR — the percentage of the digital transaction that a merchant pays to banks and this cost is often passed on to the customer.
“Payment service providers play a vital role in growing digital payments. The prohibition on charge of MDR on RuPay and UPI would kill the industry and make the business model unviable. It’s like nationalization of the payments industry,” said Vishwas Patel, Chairman, PCI and Director Infibeam Avenues.
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