The Finance Ministry does not expect a meaningful rise in cash transactions after the proposed merchant discount rate on a small slice of UPI payments, according to sources familiar with the matter. Officials believe the impact will be limited because only a narrow portion of UPI volume will be affected and RuPay debit card transactions will remain free, reducing the risk of users shifting away from digital payments.
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"Finance Ministry Sees No Cash Surge After UPI MDR Move, Sources Say"
The Finance Ministry does not expect a meaningful rise in cash transactions after the proposed merchant discount rate on a small slice of UPI payments, according to sources familiar with the matter. Officials believe the impact will be limited because only a narrow portion of UPI volume will be affected and RuPay debit card transactions will remain free, reducing the risk of users shifting away from digital payments.
Finance Ministry Sees No Cash Surge After UPI MDR Move, Sources Say
R
RDU Global Wire
BFSI & Fintech Desk
New Delhi, India Just now (08:36 AM IST)•5 min read
The Finance Ministry does not expect a meaningful rise in cash transactions after the proposed merchant discount rate on a small slice of UPI payments, according to sources familiar with the matter. Officials believe the impact will be limited because only a narrow portion of UPI volume will be affected and RuPay debit card transactions will remain free, reducing the risk of users shifting away from digital payments.
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