The Reserve Bank of India (RBI) backs the introduction of a Merchant Discount Rate (MDR) for large-value Unified Payments Interface (UPI) transactions. The RBI frames the move as part of efforts to strengthen UPI’s long-term sustainability by aligning incentives across the payments ecosystem.
In its statements, the RBI also emphasizes how MDR is distributed among ecosystem participants. It says a fair and appropriate allocation of MDR is important to help sustain continued investment in technology, infrastructure, and acceptance networks, which are needed to support growth in digital payments.
Both outlets report the RBI’s rationale that charging MDR in these cases supports investment and wider acceptance. While the coverage focuses on different phrasing—one stressing “introduction” of MDR for large transactions and the other highlighting RBI’s “weight” behind the change—the core message is consistent across sources: the RBI sees MDR for high-value UPI payments as a mechanism to promote UPI’s long-term viability.
