Stories
UPI MDR Deferral Unjustified as Most Payments Remain Unaffected: Abizer Diwanji
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CNBC TV18•08-10-2026, 11:27
UPI MDR Deferral Unjustified as Most Payments Remain Unaffected: Abizer Diwanji
- •Abizer Diwanji, Founder of NeoStrat Advisors, stated that the deferral of the proposed merchant discount rate on UPI transactions lacks economic justification.
- •Around 95% of merchant payments remain unaffected, and the impact on the remaining transactions is limited with a maximum charge capped at ₹300.
- •Diwanji argues that the resistance is merely pushback against change and the proposed system will ultimately benefit the UPI ecosystem.
- •Automatic deductions at the merchant level ensure there will be no significant administrative burden or payment collection issues.
- •Repeated delays and indefinite postponement could hinder resource generation needed to improve and secure the UPI infrastructure.
Key Questions Answered
According to Abizer Diwanji, around 95% of merchant payments face no impact from the deferral of the proposed merchant discount rate on UPI transactions.
Diwanji stated that UPI systems can automatically execute the required deductions at the merchant level, preventing any significant additional process or payment collection issues.
The proposed framework seeks to create a sustainable revenue model to support continuous investments in cybersecurity, infrastructure resilience, and long-term technological innovation.
