There is an intense debate over the Merchant Discount Rate, or MDR, on UPI. Watch this video to know exclusive inside details of how the government planned to introduce the fee. On February 18 this year, the Department of Financial Services, or DFS, told the Parliamentary Standing Committee on Finance that “sustained expansion of UPI requires a viable revenue mechanism to support investments, especially to promote UPI in Tier 3 to Tier 6 cities". Six months later, the same DFS informed the Finance Committee of Parliament that, given the sustainability of the UPI ecosystem and the burden on the government exchequer, the Department was exploring two options. Watch the full video to know these two options, and how MDR was chosen.
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