MDR won’t have big impact on UPI volumes: RBI Guv

What happened: RBI Governor Malhotra said the central bank sees no drop in UPI volumes and does not expect a small fee to have a major impact. The government recently allowed MDR of 0.4 percent on transactions above Rs 2,000. Key numbers: MDR 0.4 percent on UPI transactions above Rs 2,000. Why it matters: The RBI Governor also said bank credit growth will stay strong and that current account pressure is temporary, with the Balance of Payments expected to return to surplus.

RBI Governor Malhotra said the central bank sees no drop in UPI volumes and does not expect a small fee to have a major impact. The government recently allowed MDR of 0.4 percent on transactions above Rs 2,000.

The RBI Governor also said bank credit growth will stay strong and that current account pressure is temporary, with the Balance of Payments expected to return to surplus.