UPI MDR deferral unjustified as 95% of merchant payments face no impact: Abizer Diwanji - CNBC TV18
Reported by CNBC-TV18 Markets, not nibnow. We are not the publisher of this story, only the source is.
The claim that the UPI merchant discount rate (MDR) deferral will not affect most merchants or consumers suggests the policy may have limited economic impact, which matters to businesses and users of digital payments.
Abizer Diwanji, the founder of NeoStrat Advisors, has argued that the recent decision to defer the merchant discount rate for UPI transactions lacks sufficient economic rationale. According to his assessment, the policy change offers minimal benefit to the broader market. He noted that the vast majority of merchants, specifically ninety-five percent, will not experience any significant financial impact from this adjustment. Furthermore, Diwanji emphasized that consumers remain unaffected by this regulatory shift. Consequently, he views the deferral as an unnecessary measure that fails to provide meaningful relief to either side of the transaction ecosystem.
- •Monitor any official statements from India’s payments regulator on the final decision about the MDR deferral
- •Watch for announcements on when the deferral, if approved, will take effect
- •Track reactions from merchant groups and consumer advocacy bodies as the policy is implemented