The Reserve Bank of India’s deputy governor has sought to calm concerns that the return of merchant discount rates on select UPI payments will push consumers back to cash. Shirish Chandra Murmu said digital payments and cash circulation have been rising in parallel, arguing that cash serves both as a transaction medium and as a store of value.
The clarification comes ahead of the October 15 rollout of MDR on UPI transactions above Rs 2,000, a move that could reshape merchant economics in retail-heavy sectors, including automotive and mobility. The policy debate now centers on whether the fee will be absorbed by businesses, passed on to customers, or simply become another cost in India’s fast-expanding digital payments stack.
The Reserve Bank of India’s deputy governor has sought to calm concerns that the return of merchant discount rates on select UPI payments will push consumers back to cash. Shirish Chandra Murmu said digital payments and cash circulation have been rising in parallel, arguing that cash serves both as a transaction medium and as a store of value.
The clarification comes ahead of the October 15 rollout of MDR on UPI transactions above Rs 2,000, a move that could reshape merchant economics in retail-heavy sectors, including automotive and mobility. The policy debate now centers on whether the fee will be absorbed by businesses, passed on to customers, or simply become another cost in India’s fast-expanding digital payments stack.
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Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.
