NPCI says only about 10% of the value of UPI transactions is at risk of attracting merchant discount rate (MDR) charges that could be passed on to consumers. NPCI chief Dilip Asbe says most of the proposed MDR-related costs would be absorbed by businesses rather than transferred to customers.
According to Asbe, the distribution of MDR collection is concentrated among larger merchants. He notes that around 80% of MDR collected would come from businesses with annual turnover above ₹1,000 crore. NDTV adds that about 10% of the overall MDR charged by companies with annual turnover of ₹1 crore or more may not be passed on to consumers.
The outlets align on the broad point that only a small share of transaction value—and only a limited portion of proposed charges—would potentially affect end users, with the remainder expected to be borne by corporates and other businesses. Different statements focus on varying turnover brackets and how much of the MDR is likely to be absorbed versus passed on.
