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Experts believe that the phenomenal growth in UPI payments

Retail payments umbrella entity National Payments Corporation of India (NPCI) expects to operationalize the linking of Rupay credit cards. The unified payments interface (UPI) network in a couple of months, chief executive Dilip Asbe said. RBI allowed linking credit cards to the UPI system. A move that experts had said would test the zero merchant discount rate (MDR) benefit available to the homegrown payments system.

Experts believe that the phenomenal growth in UPI payments has been aided by the zero-MDR regime.

Experts believe that the phenomenal growth in UPI payments has been aided by the zero-MDR regime. A reason why merchants prefer payments through UPI instead of cards. MDR is the charge paid by the merchant to the bank. Card network and the point-of-sale provider for offline transactions and the payment gateways for online purchases. On credit cards, MDR ranges between 2 and 3% of every transaction value. We might have to take care of the smaller merchants and protect them from the MDR. While the existing credit card servicing merchants can continue to pay,” said Asbe. Asked about the difference in pricing of UPI and credit cards. And how both will be synched, RBI deputy governor T. Rabi Sankar had said in June that going to the pricing structure is jumping the gun. RBI will see how it will be priced.

By Ram

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