Banks will monitor merchants to ensure that Merchant Discount Rate (MDR) on UPI transactions is not passed on to consumers, government sources said.
The Indian Banks’ Association (IBA) will put in place a mechanism to ensure that consumers are not charged the MDR on UPI transactions.
Finance Ministry To Meet IBA
The Finance Ministry will hold a meeting with the Indian Banks’ Association to discuss the UPI issue, according to government sources.
The ministry will also hold discussions with merchants and the Confederation of All India Traders (CAIT) on the MDR issue.
IBA To Launch Consumer Awareness Campaign
The IBA will start an explanatory campaign in every regional language to create awareness among consumers about the MDR issue.
The campaign will seek to explain the mechanism and ensure that consumers are aware that MDR should not be passed on to them.
GST Council May Take Up MDR
The GST Council is likely to take a view on the applicability of GST on MDR, government sources said.
The issue of GST on MDR is expected to be considered separately as discussions on UPI charges continue.
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