Parliament received proposed amendments to the Payment and Settlement Systems Act from Finance Minister Nirmala Sitharaman. UPI recorded 23.6 billion transactions worth Rs 29.9 trillion in July under the National Payments Corporation of India. The amendments address merchant discount rates previously eliminated in 2020.
“India moves to give its instant payments network a business model”
Read at TechCrunch →No center sources covered this
“India paves way for return of merchant fees on UPI; what it means”
Read at Times of India →Reintroducing MDR on UPI risks reversing financial inclusion gains for low-income users and small merchants by shifting costs onto a zero-fee public utility.
“Equity and protection of vulnerable groups from fee burdens”
The amendments correct indefinite subsidies that distort pricing and provide unreciprocated benefits to foreign-linked platforms at the expense of domestic banks.
“Market-driven pricing and reduction of state interventions”
Amendments add further state direction over contract terms in an already government-linked payments system, substituting political rules for voluntary negotiations.
“Freedom of contract and opposition to regulatory toggles”
All three views overlook that amendments may primarily extract revenue from dominant foreign platforms and that NPCI's bank ownership implies existing cross-subsidies rather than pure policy choice.
“Unexamined platform ownership and architecture details”
Ratings by MBFC