Bernstein: UPI payments likely to remain free for consumers despite potential MDR introduction

Summary

Bernstein suggests that UPI users will likely remain unaffected even if a Merchant Discount Rate (MDR) is introduced, with large merchants expected to bear a 30-40 bps fee, while small merchants and low-value transactions may be exempt. RBI Governor Sanjay Malhotra stated it is too early to comment on the matter.