In graphs | Why private banks and foreign UPI apps stand to gain from the MDR charge
The National Payments Corporation of India (NPCI) announced that transactions of ₹2,000 or more in essential sectors will incur a flat Merchant Discount Rate (MDR) of ₹5. Private banks and foreign UPI apps are expected to benefit significantly from this charge, as they can capitalize on increased transaction volumes. Stakeholders are closely monitoring the financial implications of this change.