The government plans to ask the Indian Banks’ Association (IBA) to devise a mechanism to ensure that the 0.4% merchant discount rate (MDR) associated with UPI is not passed on to consumers, according to official sources cited by NDTV.
The report frames this as a step the government is likely to take following discussions or policy work around UPI charges and how the MDR is applied across transactions. While NDTV reports the government’s intent to involve the IBA, it does not specify the exact mechanism, timelines, or how the arrangement would be implemented in practice.
In terms of differing angles, only one outlet is provided here. As a result, the available information consistently focuses on the same point: the government’s expectation that IBA will help ensure the 0.4% MDR does not ultimately become a consumer-facing cost.
