Economy · India

RBI Defends UPI Transaction Charges, Citing Sustainability

The Reserve Bank of India (RBI) has defended the introduction of a Merchant Discount Rate (MDR) on large-value UPI transactions exceeding Rs 2,000. The central bank stated that this measure is necessary to ensure the long-term sustainability of India's digital payments ecosystem. Fintech experts, however, have raised concerns, suggesting the MDR might benefit US service providers. Following the announcement, shares of companies like Paytm and MobiKwik saw a significant surge, with some brokerages increasing their target prices and earnings estimates for Paytm.

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