Introducing MDR on UPI at the start of festive season could not have come at a more challenging time for the industry. This period is critical for merchants, retailers and consumer-facing businesses, many of whom are already working hard to revive demand and improve margins. Adding another cost to digital transactions at this juncture risks putting further pressure on an ecosystem that is still finding its footing. UPI has been a powerful enabler of consumption and formalization and any move that increases the cost of acceptance needs to be carefully calibrated, particularly during the most important sales period of the year.
The view is presented by Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI)