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Payments Council Urges PM to Rethink Zero MDR Policy
Financial Express Lucknow
|March 25, 2025
THE PAYMENTS COUNCIL of India (PCI), an association of non-banking payment industry players, has submitted a formal letter to the Prime Minister, seeking urgent reconsideration of the zero merchant discount rate (MDR) policy for the Unified Payments Interface (UPI) and RuPay debit card transactions.
While the government has provided financial incentives to offset some of the ecosystem's operational costs, the letter points out that the ₹1,500-crore allocation covers only a fraction of the estimated ₹10,000-crore annual cost required to maintain and expand UPI services.
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