UPI MDR May Be Set At 40 Basis Points, Banks Could Get Largest Share: Report

by · Inc42

SUMMARY

  • The proposed UPI MDR could be set at around 40 basis points, with issuing banks potentially receiving the largest share of the fee.
  • An MDR on select merchant payments would give banks and payment companies a direct revenue stream from UPI transactions, which currently attract no merchant fee.
  • Issuing banks could receive 40% of the MDR, while third-party apps and acquiring banks may get 30% each.