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Economy, business and finance
Bengaluru Founder Reacts To UPI MDR Move: ‘There Lies A Learning…’
The new UPI MDR rule has sparked a debate over whether merchants will absorb the fee or find ways to pass the added cost on to customers through other charges.
The government’s decision to bring a merchant discount rate (MDR) to some UPI payments has started a debate over who will actually bear the extra cost. Under the new rule, a 0.4 per cent MDR will apply to UPI payments above ₹2,000 made to merchants.
While the government has said customers should not be charged for the MDR, some business owners and users are worried that merchants could find other ways to recover the amount. Bengaluru-based entrepreneur Siddharth Dialani has shared why he believes customers could eventually have to pay more.