Govt denies foreign pressure behind UPI MDR, says charge will help Indian UPI apps
The Indian government has denied that the new Merchant Discount Rate (MDR) on UPI transactions was implemented due to U.S. pressure. Officials stated the charge is intended to protect domestic payment sovereignty and support local companies within the UPI ecosystem.
Why it matters
The move highlights ongoing tensions regarding market access for foreign payment providers and the protection of domestic digital infrastructure.
The introduction of the Merchant Discount Rate (MDR) will help more domestic payments companies to operate under UPI, contrary to the allegation that the charge has been introduced under external pressure, the government said on Thursday.
The public sector National Payments Council of India (NPCI) on Wednesday announced the MDR structure on UPI payments prompting criticism from the Opposition and allegations that U.S. pressure had pushed the Indian government to introduce this charge.
“Contrary to misleading claims made that MDR has been introduced under external pressure, introduction of MDR on select high-value transactions will enable more domestic companies to operate under UPI,” the Department of Financial Services (DFS) said on X. “Thus, the action of introduction of MDR is a step in protecting India’s sovereignty in the electronic payment ecosystem.”
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in