- RBI provides regulatory supervision and undertakes security initiatives for UPI, while officials discuss usage numbers.
- The Union Ministry of Finance proposed amendments to the Indian payment system, which the RBI is now regulating under the Payment and Settlement Systems Act.
- The government introduced a new structure for Merchant Discount Rate (MDR) via a ministry circular.
Government reviews request for MDR exemption for petrol pumps in India
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The All India Petroleum Dealers Association (AIPDA), represented by Ajay Bansal, sought a complete exemption from Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000. Ajay Bansal submitted a representation to the finance ministry concerning payment processing costs and MDR exemptions. The Department of Financial Services is likely to examine the request for relief for petrol pumps.
From moneycontrol.com
Why it matters
The review of MDR charges directly affects the operating costs and margins of petrol pump dealers. AIPDA argues that these dealers operate on fixed margins tied to fuel quantity, preventing them from increasing earnings based on transaction value.
The government introduced a new structure for Merchant Discount Rate (MDR) via a ministry circular, and the Union Ministry of Finance proposed amendments to the Indian payment system.
From moneycontrol.com
Who's involved
- finance ministryThe ministry receiving the representations and likely examining the request for relief.
- Nirmala SitharamanThe Finance Minister to whom the representation was sent.
- Ajay BansalPresident of AIPDA, who submitted the representation seeking government intervention.
- Ministry of Petroleum and Natural GasThe ministry being sought for a response regarding the policy review of MDR charges.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Ministry of Petroleum and Natural GasSpeculative
The Ministry could be involved in the policy review of MDR charges for the fuel sector.
Keep exploring
The entities involved
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finance ministry
type of ministry responsible for government finances and economic policy
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Nirmala Sitharaman
Indian politician