00:00Post-Diwali, there's going to be the fee on UPI.
00:04That's the big news coming in.
00:05That's right, you heard about the MDR fee that has been now a debate for a while.
00:11The UPI MDR on select merchant transactions shall be implemented post-Diwali.
00:17Let me give you further details on that.
00:20The UPI MDR on select merchant transactions shall be implemented after Diwali.
00:26And this would be, remember that it would be post, what I can tell you in the latest that's coming
00:33in,
00:33is that UPI and Services Steering Committee decided that keeping in mind the festive season which is upcoming
00:40and ongoing also right now given the Navaratri Festival celebrations,
00:44the merchant discount rate, the MDR, on select person to merchant P2M, UPI transactions,
00:51shall be implemented immediately after Diwali at a date that will be notified.
00:57So when that happens, there will be a separate date for it.
01:01What does it mean?
01:02Will it impact you and I and our UPI payments as well?
01:06Or will it only be for the merchants?
01:07Will the merchants want to take it out from our pockets?
01:10That is also something that I'll be discussing further as my colleague, our editor from Business Today,
01:15Sakshi Batrai, is set to join on this.
01:17And Sakshi, of course, that's a question that everybody would want to know,
01:21especially at a time like this, that at least nothing before Diwali.
01:25Because that is where people would expect discounts, relief, bonus, but not a fee.
01:30So it's not happening.
01:31That's when the government has possibly decided to delay it.
01:35But when we look at post-Diwali, do tell us directly about what does this MDR mean?
01:41What does it mean about select person-to-merchant UPI transactions?
01:47And will it go out of the customer's pocket as well?
01:51Sakshi.
01:52Absolutely.
01:53This has been a concern which a lot of fintech players and merchants have all come out and clarified
01:59and opened.
02:00The government has also been constantly talking about the kind of cost that the merchants will have to incur
02:06should not be passed on to the consumers.
02:08Remember, first of all, it is not on any person-to-person.
02:11So if I send you money above 2,000 rupees, there is absolutely no charge.
02:16It is only on certain merchants which fall under the category that will have to incur certain cost
02:21of 0.4% as the UPI MDR fee after Diwali.
02:25So for now, at least during the festive season, the concerns have been obeyed at this point in time
02:32that at least the festive sales will not get impacted.
02:35Of course, merchants and fintechs have been constantly asking the NPCI to postpone this
02:39since there is a lot of clarity that merchants want to know as to what sort of categories will they
02:44fall under,
02:44what kind of fee they will have to incur at this point in time.
02:47Overall, what will be the impact on an annual level for them and whether it is sustainable or not.
02:53Even when we compare it with debit cards and credit cards, it still comes to be lower
02:57in terms of the MDR fee that is charged on debit and credit cards.
03:00So the concerns that have been clarified by merchants and fintech press.
03:04But yes, after Diwali, this message definitely comes in from the NPCI clarity coming in
03:09that it's not going to be deferred up until the next year, that is January.
03:13But starting Diwali, this could definitely be coming in.
03:17So right when this festive season sentiment is all ongoing on a solid note,
03:21right after that, you will be able to see the UPI MDR fee coming in.
03:25This will benefit the entire payment ecosystem.
03:27Give us more reasons on this.
03:27According to you, what your sources in the government or the ministry are telling you
03:30was the reason to initiate this fee because we understand the merchants wouldn't be happy over this
03:35and I believe somewhere they'll want to take it out of the pocket.
03:39Do you think more people or more merchants would be resorting again back to cash payments because of this?
03:44So how do you think this is going to pan out?
03:46What is the reasoning of the government behind this?
03:48So valid questions, Kuja, but I think the entire fintech and payment ecosystem had been bearing the losses so far.
03:56You know, what we have been speaking to MubiQuick, Paytm, you know, all these players have been saying
04:00that they had to, you know, completely let go of so much money from their pockets
04:05to ensure that there is a smooth infrastructure in place.
04:08They have to potentially put all the safeguards to ensure there is no cyber fraud from their end
04:12and all of that costs money and which is why they were bleeding and this kind of a sustainable practice
04:17and, you know, at this point in time when there was no MDR fee, that time UPI was very nascent
04:23in stage.
04:23Now all of us are so used to UPI payments that all of us, even if we forget our wallets
04:28at home,
04:29we don't bother because we have our mobile phones right there and we can just pay out of our QR
04:34code
04:35and we are very, very secure that way.
04:36So the kind of expansion that we have seen in UPI, it is getting unsustainable for the payment ecosystem
04:42to continue to shell out money for expanding their infrastructure.
04:46So at this point in time, it is important for them to continue the sustaining practice,
04:50you know, as in when UPI expands to even international borders.
04:54We'll wait for how the merchants are responding to this,
04:56but I want to reiterate, select person to merchant payments are going to be here
05:01and that is, we'll see how this pans out.
05:03Appreciate you joining us, Sakshi.
05:04But also, at least nothing till Diwali.
05:06After that, we'll wait for an official notification of the date.
