From The Economic Times · Saloni Shukla · · 1m
NPCI Chief: 0.4% UPI MDR Could Recover Rs 15,000 Crore
NPCI chief says proposed 0.4% UPI merchant discount rate could recover Rs 15,000 crore in first year.
In brief
NPCI chief says proposed 0.4% UPI merchant discount rate could recover Rs 15,000 crore in first year. NPCI chief Dilip Asbe states proposed 0.4% UPI merchant discount rate could recover Rs 13,000-15,000 crore in first year to fund UPI growth. Originally reported by The Economic Times.
NPCI Chief Statement
NPCI chief Dilip Asbe says proposed 0.4% UPI merchant discount rate could recover Rs 13,000-15,000 crore in first year.
“We thought rs 13000-15000 crore could be a reasonable value in year one to recover from the ecosystem”
MDR Pool Breakdown
80% of MDR pool comes from merchants already accepting credit cards.
“The majority part of the mdr will come from existing merchants who are paying mdr for credit cards”
Small Business Impact
Only 10% of MDR value from merchants not accepting credit cards.
“The remaining 10%, yes, there is a possibility”
Funding Plan
5% of MDR revenue funds small merchants to reach 10 million card-accepting businesses.
“This could fund around 20 million soundboxes and help double the number of card-accepting merchants to 10 million”
Agentic Payments
NPCI preparing to launch agentic payments framework with RBI approval.
“In the next few months, we should be able to launch our own agentic payments”
Next Steps
Agentic payments could help small merchants reach wider customer base without platform fees.
“Agentic commerce could help smaller merchants become discoverable to a wider customer base without having to depend on large platforms that charge commissions of 20-30%”
The main idea
NPCI chief Dilip Asbe states proposed 0.4% UPI merchant discount rate could recover Rs 13,000-15,000 crore in first year to fund UPI growth.
