No Fee on UPI Transaction

Finance Minister Nirmala Sitharaman has asked the banks to not charge MDR on payments through RuPay and UPI starting January 1 to encourage digital payments.

This guideline is applicable for companies with a turnover of Rs. 50 crore or more. This news was part of the budget announcement in July.

Many Fintech companies have written to the finance minister raising concerns over MDR while it seems doubtful that the government will target of achieving 40 billion transactions target. Payment startups together have spent more than Rs. 6000 crores on capex annually to spread digitalization in India since 5 years.

Source: Google

NPCI takes UPI Global

NPCI sets up subsidiary company to expand UPI to international market to explore business propositions.

Google has also approached Federal Reserve to consider the use-case of UPI as an added option to pay vendors.

In October 2019, the real-time payment service UPI dominated the market with 50.49% of all digital transactions according to sources.