Economy
MDR Apprehension Unlikely to Spur Higher Cash Usage: RBI Deputy Governor
The Hindu50m
THE BRIEF
1
RBI Deputy Governor Shirish Chandra Murmu stated that concerns over increased cash usage due to a new Merchant Discount Rate are unlikely to materialize.
2
A 0.4% MDR will apply to person-to-merchant UPI payments above ₹2,000 from October 15, paid by merchants and capped at ₹300 for transactions of ₹75,000 or more.
3
Murmu emphasized that the dual trend of rising digital transactions and cash in circulation is not a paradox as cash serves as both a transaction means and a value store.