Reserve Bank of India Governor Sanjay Malhotra on Wednesday said levying a “small fee” in the form of merchant discount rate (MDR) will not have a “major impact” on UPI transaction volumes.
“As of now, we do not see any drop in volumes. Malhotra declined to answer any question on the RBI rejecting Tata Sons’ request for surrendering its NBFC licence and asking the largest business conglomerate to list in compliance of the upper-layer NBFC norms, which is at the centre of a protracted conflict between the majority owners and the management of the holding company.
And I don’t personally think that a small fee will have a major impact on the volumes,” he told reporters at the central bank headquarters here. He said the RBI is conscious of adverse impact on asset quality at non-bank lenders amid a flush of liquidity, but made it clear that the central bank does not expect any such eventuality playing out.
