RBI backs MDR on large-value UPI transactions

What happened

The Reserve Bank of India has backed the introduction of Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000, stating that it will help sustain digital payments.

Causal chain

RBI supports digital payments

India impact

Sector impacts

Nifty 50 +

Support for digital payments enhances transaction volumes.

Short term (1–4 weeks)

Positive for digital payment sectors.

Long term (3–6 months)

Encourages growth in digital transactions.

Sources

· Business Standard
· Firstpost