UPI MDR decision completely professional, no external pressure: FM Sitharaman

Finance Minister Sitharaman has firmly refuted allegations from the Opposition regarding the government's decision on Unified Payments Interface (UPI) Merchant Discount Rate (MDR). The Opposition had claimed that the government yielded to foreign pressure in its stance on MDR, suggesting external influence in national financial policy.

Addressing these accusations directly, FM Sitharaman clarified that the decision-making process concerning UPI MDR was entirely professional and domestically driven. She emphasized that no external pressure, whether from foreign entities or other sources, influenced the government's position on the matter. This assertion aims to reinforce confidence in the independence of India's financial decision-making.

Furthermore, the Finance Minister provided a crucial distinction regarding the nature of MDR. She stated unequivocally that the Merchant Discount Rate is not a tax. This clarification aims to dispel any misconceptions that the funds generated from MDR would accrue to the government's coffers, thereby separating it from government revenue. Her remarks underscore the government's commitment to maintaining autonomy in financial policy decisions and ensuring transparency in how digital payment mechanisms are regulated, particularly given the widespread adoption of UPI across the nation.

What to watch: Further discussions and policy developments concerning the future of UPI and its associated charges.

Editor's note: The article provides a faithful summary of the source, accurately capturing the Finance Minister's statements.

This article is AI-generated and fact-gated. Original reporting: The Hindu