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Amazon Pay India CEO Pushes for Fair MDR in UPI Transactions

10 July, 20242 min read

Recently Amazon Pay India CEO advocated for a fair and equitable MDR regime for UPI transactions.

This call comes at a crucial time when digital payments are rapidly gaining traction across the country.


According to the CEO, an appropriate MDR regime is essential to ensure the continued growth and adoption of digital payment systems in India.

Current Status of UPI Transactions

In 2022, there was significant discussion around the potential introduction of charges for UPI transactions.

The Reserve Bank of India (RBI) had released a discussion paper that sparked widespread debate.

Following the uproar, the Central Government decided that it was not the right time to impose charges on UPI transactions.

As a result, UPI payments remain exempt from the MDR regime, which currently applies to other forms of digital payments.

Understanding MDR

MDR, or Merchant Discount Rate, refers to the charges paid by merchants to various stakeholders involved in the processing of digital payments.

These stakeholders include issuers, acquirers, and merchant aggregators.


The absence of an MDR for UPI transactions has been seen as a way to promote the use of this payment method among consumers and businesses alike.

However, the CEO of Amazon Pay India believes that a fair MDR regime is necessary to sustain and enhance the digital payment ecosystem.

The Importance of a Balanced Approach

In India adoption of digital payment is not less than a revolutionary move.

UPI, in particular, has played a significant role in this transformation. The ease of use, coupled with the zero-cost factor, has made UPI a preferred choice for millions of users.

However, the CEO of Amazon Pay India emphasizes that the sustainability of this system requires a balanced approach.

A fair MDR regime would ensure that all parties involved in the transaction process are adequately compensated.

So that it encourage the continued development and innovation of digital payment technologies.

Addressing Concerns and Moving Forward

The introduction of an MDR regime for UPI transactions is not without its challenges.

There are concerns that imposing charges could deter users and slow down the adoption rate.

However, proponents argue that a minimal and fair charge structure can designed to mitigate these concerns.

It is crucial to strike a balance where the charges are not burdensome for users but still provide enough incentive for stakeholders to invest in and maintain the digital payment infrastructure.

Author Review

In summary, The advocacy of Amazon Pay India CEO toward fair and equitable MDR regime mainly focus on sustainable approach to digital payments.

As India continues to embrace digital transactions, it is essential to ensure that the ecosystem remains robust and beneficial for all parties involved.

By addressing the MDR issue, India can further strengthen its position as a leader in the digital payments landscape.

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