Digital Payments Debate: The Introduction of UPI MDR

As UPI transactions exceed 24,000 crore annually, the government seeks a sustainable funding model. Experts like Arpita Mukherjee suggest that MDR provides necessary margins for upgrading QR and POS infrastructure. Conversely, critics point out that platforms like PhonePe and Google Pay dominate the market, and there is a risk that Indian merchants might end up subsidizing global giants. The challenge lies in balancing economic sustainability with the goal of a cashless society.