News India Live, Digital Desk: New government scheme: The government is working on a plan to give the benefit of merchant discount rate (MDR) concession to consumers directly to the UPI Payment Gateway, the Ministry of Consumer Affairs under the leadership of Prahlad Joshi is creating a mechanism of consumer affairs that will help the final customers by giving them cost benefits.
When a customer pays the seller (merchant), the seller has to pay a 2 to 3 percent discount rate of total payment. For example, if a customer pays Rs 100 to the seller, the seller pays Rs 2 to the payment processing gateway companies (Visa, MasterCard) and the remaining Rs 98 remains with a seller.
Payment Gateway Companies (Visa, MasterCard) charge two to three percent of the total payment, while no fee is charged in UPI payment.
The concerned Ministry is ready to consult with various stakeholders including e-commerce platforms, payment service providers, National Payment Corporation of India (NPCI), Department of Financial Services (DFS) and Consumer Rights Group. The ministry is expected to prepare its final blueprint in the month of June.
This proposal is expected to increase the acceptance of UPI payment and this will make UPI a even more attractive option, which will promote UPI and bring it to the mainstream.
Are there any obstacles in the proposed UPI step?
Yes, you heard right. Non-Banking Players (Payment) Industrial Representative Institution formed in 2013, Payment Council of India wants MDR to be imposed to some extent on UPI and RuPay. He says that due to zero charges, companies are unable to improve their system, not investing in cyber security and new technology. He has suggested that MDR of 0.3% should be imposed on big traders. The final decision is to be taken by the Ministry and further decision will be taken in a possible meeting to be held in June.
Madhya Pradesh: SIT will investigate against Vijay Shah on Colonel Qureshi controversy
