The amended law allows the Centre to decide which digital payment modes remain free and which could attract merchant charges in the future
UPI is free for users and merchants, but banks, payment providers and NPCI bear the cost of maintaining and securing the ecosystem
Government incentives cover only a fraction of industry costs, raising concerns about long-term investment as digital payments continue to grow
A modest MDR on high-value UPI transactions could strengthen the ecosystem while leaving most everyday, low-value payments unaffected
Countries such as Brazil and China levy merchant charges while sustaining rapid growth in digital payments and infrastructure development
A simple, well-designed MDR framework can support innovation, encourage competition and keep India's digital payment system resilient