New Delhi, Aug. 5 -- UPI users are unlikely to pay any charges even if the government decides to allow a Merchant Discount Rate (MDR) on UPI transactions in the future, according to a report by global brokerage firm Bernstein.

The report, cited by ANI on 5 August, mentioned that "a merchant-funded MDR of 30-40 basis points (bps) appears to be the most likely outcome if the government decides to permit such charges."

The report comes amid discussions over proposed amendments to the Payment and Settlement Systems Act. The proposed law does not impose MDR. Instead, it removes UPI's automatic statutory exemption, giving the government the power to decide in the future whether any digital payment mode should attract MDR.

MDR is a fee that m...