Delhi meeting leads to UPI MDR delay, boosting digital payments

New Delhi, October 13 – A delegation of business leaders met Finance Minister Nirmala Sitharaman on September 30 at the Capital’s duty‑free building, resulting in the government’s decision to put the proposed UPI Merchant Discount Rate (MDR) on hold. The All India Trade Federation (CAT) announced the outcome, describing it as a win for merchants across the country.

The meeting, chaired by CAT Secretary‑General Praveen Khandelwal, brought together roughly twenty representatives from various trade associations. Their collective appeal highlighted how an MDR could add an unnecessary cost burden on low‑margin retailers, potentially deterring broader adoption of digital payments.

CAT praised Prime Minister Narendra Modi and Finance Minister Sitharaman for responding swiftly, especially as the country heads into a season of festivals and weddings when MSME sales surge. The federation noted that keeping digital transactions affordable is essential for sustaining the growth momentum observed over the past year.

Khandelwal affirmed that CAT remains a strong proponent of a digital economy, but emphasized that policies must be designed to protect small business viability. He added that the deferred MDR will encourage merchants to continue embracing UPI, reinforcing the government’s vision of a robust Digital India.