New Delhi, Aug. 13 -- The current financial model for the Unified Payments Interface (UPI) is unsustainable and could undermine investments in cybersecurity, fraud prevention and network infrastructure, the Parliamentary Standing Committee on Finance has said.

The government is exploring two options to make the UPI ecosystem financially sustainable: restoring the Merchant Discount Rate (MDR) on certain high-value transactions or high-turnover merchants, and introducing a tiered incentive structure to gradually phase out government support, the Ministry of Finance told the committee.

Government Weighs Two Options

The Department of Financial Services (DFS) said it was examining the feasibility of restoring MDR for transactions or merchan...