Low or zero MDR: RBI seeks views on payments

“In any economic activity, including payment systems, there does not seem to be any justification for a free service, unless there is an element of public good and dedication of the infrastructure for the welfare of the nation. But who should bear the cost of setting up and operating such an infrastructure is a moot point,” the RBI said in the paper. UPI and RuPay debit card transactions currently attract no MDR, following a government decision to relieve merchants of these charges and ensure greater acceptance of digital payments, effective January 1, 2020.

(With inputs from FE)