NEW DELHI, SEPT 17: The Finance Ministry has clarified that the decision related to Merchant Discount Rate (MDR) on UPI transactions was not taken under any pressure from the United States.
The ministry also said that the recent circular issued by the National Payments Corporation of India (NPCI) does not provide any special advantage to foreign credit card companies.
The clarification comes amid discussions over the proposed changes to charges applicable to certain UPI transactions and concerns regarding their potential impact on domestic and international payment networks.
The Finance Ministry said the decision has been taken keeping in view the requirements of India's digital payments ecosystem and the broader interests of the country's payment infrastructure.
It further clarified that the NPCI circular should not be interpreted as providing preferential treatment to foreign credit card issuers.
The government continues to support the expansion of UPI, which has emerged as one of India's major digital payment platforms, while reviewing policies related to transaction costs and payment service providers.
Officials said the framework will continue to be guided by domestic policy considerations and the evolving requirements of India's digital payments sector.
