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NPCI defers UPI merchant fee until after Diwali
સમાચારમાં કેમ?
UPI fee deferred past Diwali: NPCI runs it, but who regulates payments? GS-III banking answer
The National Payments Corporation of India has pushed back the proposed merchant discount rate on UPI transactions above Rs 2,000 at medium and large merchants, which was to start on 15 October, to immediately after Diwali. Traders' bodies had said the charge would dampen festive-season sales.
Why it matters: factual, Prelims-type
What you need to know
2 મિનિટ
The National Payments Corporation of India has pushed back the proposed merchant discount rate on UPI transactions above Rs 2,000 at medium and large merchants, which was to start on 15 October, to immediately after Diwali.
Traders' bodies had said the charge would dampen festive-season sales.
સ્રોત: Topper IAS editorial (PIB / The Hindu / Indian Express)
મુખ્ય તથ્યો
Remember these
- NPCI has deferred the proposed MDR on UPI transactions above Rs 2,000 at medium and large merchants; it was due from 15 October and now starts right after Diwali.
- MDR (Merchant Discount Rate) is the fee a merchant pays on each digital payment, split among the bank, payment service provider and network.
- NPCI (National Payments Corporation of India) is the umbrella organisation for retail payments and operates UPI, RuPay and IMPS.
- The Reserve Bank of India regulates and supervises payment systems under the Payment and Settlement Systems Act, 2007.
- Traders' bodies argued the charge would dampen festive-season sales.
પ્રિલિમ્સ · મેઇન્સ
How the exam will ask it
પ્રિલિમ્સ
- Statement: Payment systems such as UPI are regulated and supervised by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007. (Correct)
- Statement: NPCI is the regulator of payment systems in India. (Incorrect: it is an umbrella organisation that operates retail payment systems; the RBI is the regulator.)
- Statement: Merchant Discount Rate is the charge paid by the merchant, not the customer, for accepting a digital payment. (Correct)
મેઇન્સ
GS-III (Economy: banking and payments systems). Issue: UPI is free for users and merchants, yet processing carries costs, so a merchant discount rate on larger transactions at bigger merchants is proposed. Policy: the RBI regulates under the Payment and Settlement Systems Act, 2007, while NPCI operates the system. Implication: a fee can hurt adoption and small traders; way forward is a calibrated, transparent MDR with exemptions for small merchants and sustainable funding for the payments infrastructure.
Quick recall
Answer before you reveal
Under the Payment and Settlement Systems Act, 2007, the authority that regulates and supervises payment systems such as UPI is the:
- Securities and Exchange Board of India
- National Payments Corporation of India
- Ministry of Finance
- Reserve Bank of India
જવાબ જુઓ
જવાબ: D — Reserve Bank of India is correct. Reserve Bank of India is correct. The Reserve Bank of India is the regulator of payment systems; NPCI operates UPI as an umbrella organisation for retail payments.
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