UPI MDR row: Banks to ensure merchants don’t pass charges to consumers

NEW DELHI: Banks will monitor merchants to ensure that the Merchant Discount Rate (MDR) on UPI transactions is not passed on to consumers, news agency ANI reported citing government sources on Thursday. Further, they said that not a single penny from MDR will come to government, rather it will be shared with UPI ecosystem, including banks.Moreover, news agency PTI reported citing government sources that they were hopeful that GST Council would review 18 per cent GST on merchant fee on UPI transactions above Rs 2,000.The Indian Banks’ Association (IBA) is expected to put in place a mechanism to ensure that merchants do not recover MDR from customers.