New UPI MDR framework to support innovation and investment: Assocham

Assocham said the new UPI MDR framework for high-value merchant payments will support investment in technology and infrastructure, while helping expand UPI acceptance across the country

The new merchant discount rate (MDR) framework for high-value UPI merchant payments will help support investment in technology and payment infrastructure while encouraging wider acceptance of digital payments, the Associated Chambers of Commerce and Industry of India (Assocham) said.

Nirmal K Minda, president of Assocham, said the introduction of a calibrated MDR structure for large-value UPI merchant transactions was an important step toward the long-term sustainability of India's digital payments ecosystem.

"It will support continued investment in technology, infrastructure and payment acceptance networks, enabling UPI to scale further and serve consumers and businesses across the country," Minda said. ALSO READ: UPI MDR charges: What general users need to know about the new rules

He further said the new structure would allow MDR to be distributed among different participants in the payments ecosystem. According to him, this could help expand UPI acceptance, bring more customers into the digital payments system and support the growth in transaction volumes.

He said the framework would also help UPI continue to expand while "strengthening its reach, innovation and infrastructure" across the country.