MDR charges on UPI: UPI transaction has become the easiest and most popular medium of online transaction. According to NPCI data, 600 crore transactions were done with the help of UPI in July. With the help of these transactions, a transaction of Rs 10.2 lakh crore was completed.
According to the NPCI report, UPI transactions are witnessing a month-on-month growth of 7.16 percent. At the same time, the value of transactions is increasing by 4.76 percent year on year. In the midst of so many transactions, the Reserve Bank is now considering to charge it.
The Reserve Bank has issued a discussion paper to review the charges for the payment system. In which the focus is on how to bring transparency in the charges levied in the payment system and what measures should be taken. RTGS, NEFT, UPI and Debit, Credit Card, PPI etc. are covered under review of charges of payment system.
Transaction value based charges may be levied
In this discussion paper, it has been discussed to levy the Merchant Discount Rate on UPI transactions. The transaction amount based band can be prepared for how much the charge will be. The charge will be different for each band. Currently, there is no charge for transacting with the help of UPI. The Reserve Bank has asked that if the charge is applied on UPI transactions, then it should be applied on the basis of the transaction value or a fixed amount method should be adopted. Suggestions can be given in this regard till 3 October.
Preparation of MDR charge even on debit card transactions
The Reserve Bank is also considering levying charges on debit card transactions. Apart from this, answers have also been sought on whether Rupay card should be considered different from other debit cards. The government had made the RuPay debit card and UPI charge-free on January 1, 2020. Apart from this, some important questions related to credit card charges have also been asked.
How to convey your opinion to the Reserve Bank
The Reserve Bank of India (RBI) has asked customers, other stakeholders to give their views by October 3. Based on the suggestions received, then the final rules will be made. The Reserve Bank has made it clear in the discussion paper that it does not intend to impose any limit or control on anything, but the final decision will be taken after considering the suggestions that will come. You can send your feedback to dpssfeedback@rbi.org.in. Whatever suggestion you give, it would be good to give a solid reason behind it.
