๐ UPI's zero-MDR model was unsustainable, says ex-DFS secretary
The zero-MDR model for UPI was reassessed due to rising transaction volumes and a gap between ecosystem costs and government support. Banks incurred costs for merchant onboarding without return under the old system. From October 15, a 0.4% MDR will apply to person-to-merchant transactions above โน2,000, capped at โน300. This change addresses sustainability concerns formally raised to the government. The new framework ensures funding for infrastructure while keeping small merchant payments free. ๐