The Cost of Convenience: UPI's Uncertain Future The Lok Sabha's approval of a Bill amending the Payment and Settlement Systems Act, 2007, has sent shockwaves through India's digital payments ecosystem.
Proponents argue that introducing Merchant Discount Rate (MDR) on transactions exceeding Rs 2,000 will provide banks and payment service providers with a sustainable source of revenue.
However, others see this as a slippery slope towards undermining the principles of convenience that have made UPI so popular.