<ul><li>The Startup Policy Forum (SPF) endorses the introduction of a merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions for large merchants.</li><li>SPF believes that the two-tiered MDR framework would drive innovation, curb fraud, and sustain payment companies.</li><li>The proposed MDR model aims to balance growth with inclusion by exempting small merchants from MDR while enabling investment in digital infrastructure.</li><li>The endorsement follows recent warnings by the Payments Council of India (PCI) about the strain on the business models of fintechs and payment processors due to the absence of MDR on UPI and RuPay transactions.</li></ul>

Startup Policy Forum endorses discount rates on UPI for large merchants

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