World Bank executive views MDR on UPI as unlikely to hike fees

Neelkanth Mishra, Executive Director at the World Bank Group, stated that implementing a Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions is unlikely to cause significant fee increases. Speaking at the 5th Kautilya Economic Conclave, Mishra argued that intense competition within the payments ecosystem and the nature of a free market would prevent widespread hikes, noting that many firms remained viable even without MDR.

Mishra also identified rapidly rising interest rates as the primary risk to global financial markets. He noted that higher risk-free rates can depress asset values and create vulnerabilities in leveraged positions and collateral-backed lending. Regarding India, he acknowledged significant risks from elevated oil prices and geopolitical uncertainties but suggested the country remains relatively well-positioned compared to other heavily impacted nations.