Bengaluru, Sept. 16 -- The central government's decision regarding MDR and UPI is a welcome move that will help fund the infrastructure needed to support rapidly growing digital payment volumes, former Chief Financial Officer and Board Member of Infosys Mohandas Pai has said, noting that nearly 96 per cent of UPI transactions would remain unaffected.

Speaking with ANI on the sidelines of International Tax Conference, Pai noted that around 70 per cent of UPI payments are Person-to-Person (P2P) transactions, which remain free, while transactions below Rs 2,000 are also exempt from MDR.

"It is important to look at the data: 96% of UPI transactions will not be affected by MDR at all. Because roughly 70% of all payments are person-to-person ...