India, March 24 -- Following the Centre's decision to cut the incentives for low-value UPI (person to merchant or P2M transactions) for the financial year 2024-25 (FY25), industry body Payments Council of India (PCI) has written to Prime Minister Narendra Modi to introduce MDR (merchant discount rate) on UPI and RuPay transactions.

In its letter to the PM, the industry body has sought an urgent reconsideration of the zero MDR policy and called for levy of MDR on UPI for large merchants.

This comes after the Union cabinet, last week, announced an incentive of INR 1,500 Cr for UPI P2M transactions of up to INR 2,000 for FY25. This was a decline of nearly 60% from INR 3,500 Cr allocated for these transactions in FY24.

Formed under the aeg...