UPI MDR should not attract any GST: Former RBI Governor C Rangarajan
AI Summary
The discussion around the new MDR for UPI transactions highlights a critical juncture for the digital payments ecosystem in India. If GST is imposed on these transactions, it could deter merchants from adopting UPI, potentially stifling growth in a sector that has been pivotal in enhancing financial inclusion. Retail investors should monitor how these regulatory changes unfold, as they could impact companies involved in digital payments and fintech, especially if costs are passed on to consumers or if adoption rates decline.
The new merchant discount rate (MDR) to be imposed on UPI merchant transactions above ₹2,000 should not attract any GST, former Reserve Bank of India Governor C Rangarajan said here on Monday.
Rangarajan was speaking at the launch of ‘Cashless Nation: How UPI Changed Everything’ a book by B Sambamurthy and Santanu Paul chronicling the introduction and evolution of UPI, by here on Monday.
Original Article
Published on Hindu BusinessLine
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