Startup Policy Forum) Startup Policy Forum (SPF) wholeheartedly supports the recent industry proposal to introduce the MDR on UPI transactions for large merchants

“We believe this policy reform will be a game-changer as it will empower the next 500 million Indians by enabling their participation in India’s digital payment ecosystem that has been a global bellwether for close to a decade and counting. Equally important, it will catalyze innovation, mitigate fraud and drive sustainable growth of payment companies that have played a stellar role as harbingers of this digital payments revolution.

SPF recognizes that in a nation as diversified as India, growth imperatives have to be balanced with inclusion. The two-tiered model of MDR ensures this balance by exempting small merchants from the proposed MDR framework and preserving the extant zero MDR framework for them. This distinction will also ensure the long-tail of small value merchants have adequate impetus to upramp and experience digital payments acceptance ensuring UPI witnesses the next wave of growth.

While the proposed MDR framework meets the objective of growth, equity and inclusion, India’s digital payments landscape also needs to leverage competition to ensure a more evenly distributed and balanced ecosystem, where smaller players have room for growth. We look forward to engaging with the Reserve Bank of India, Ministry of Finance, NPCI and the office of the Hon’ble Prime Minister to ensure UPI’s next act is both sustainable and balanced.”