The National Payments Corporation of India (NPCI) has told the Supreme Court that a zero merchant discount rate (MDR) model is no longer sustainable for the Unified Payments Interface (UPI) ecosystem.
According to NPCI, the rapid growth of UPI has placed greater demands on the system’s security, resilience and infrastructure capacity, requiring a viable revenue structure to support it.
The submission comes as NPCI argues that MDR has been imposed to help prevent the UPI ecosystem from becoming “ouroboric,” or consuming itself by becoming financially unsustainable.
