In a dialogue paper launched on Wednesday, the Reserve Bank of India (RBI) requested stakeholders if service provider low cost price (MDR), a price paid by retailers to buying banks, must be introduced again for Unified Payments Interface (UPI) transactions.
The paper, which sought suggestions on the price construction for a complete gamut of digital fee channels, shall be open for feedback until October 3.
“In any economic activity, including payment systems, there does not seem to be any justification for a free service, unless there is an element of public good and dedication of the infrastructure for the welfare of the nation. But who should bear the cost of setting up and operating such an infrastructure is a moot point,” the RBI stated within the paper. UPI and RuPay debit card transactions presently entice no MDR, following a authorities resolution to alleviate retailers of those costs and guarantee larger acceptance of digital funds, efficient January 1, 2020.
(With inputs from FE)
