🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Exclusive: Major shift in UPI as Govt may allow MDR for large merchants

EntrackrEntrackr · 2m ago
Exclusive: Major shift in UPI as Govt may allow MDR for large merchants
Medial

Exclusive: Major shift in UPI as Govt may allow MDR for large merchants As of now, the government provides 15 basis points (bps) of subsidy for UPI transactions below Rs 2,000. One basis point is one-hundredth of a percentage point. Banks may soon find a monetization opportunity in Unified Payments Interface (UPI) transactions, with the Finance Ministry (FM) and the Reserve Bank of India (RBI) likely to permit Merchant Discount Rate (MDR) collection only from large merchants. According to three sources familiar with the matter, the move is under active consideration and targets businesses handling high volumes of UPI payments. "Large merchants such as Amazon, Dream11, Swiggy, Zomato, and Zepto may soon start paying MDR to banks," said one of the sources requesting anonymity. "The Finance Ministry and the RBI are likely to define a threshold such as daily UPI transaction volume/value for MDR applicability on high-UPI transacting merchants," the source added. MDR on UPI refers to the fee that banks charge merchants for processing UPI-based payment transactions. “The new MDR slab comes with a condition that large merchants will not be allowed to pass on MDR to consumers, they must bear it as a cost of doing business,” said the person quoted above. According to sources, the discussion on applying MDR on UPI transactions has been ongoing since the last quarter of FY25. The potential move comes in response to growing concerns from banks and payment aggregators around the sustainability of UPI infrastructure, which currently operates without any revenue model and inadequate subsidy. “Banks are already bearing losses on UPI. Ongoing costs like server upgrades, tech investments, and compliance add up. Without MDR from large merchants, sustaining UPI’s growth will be difficult,” said one of the senior banking executives of a leading private bank requesting anonymity. Last year, the Payments Council of India (PCI) proposed that large merchants, already paying 2% MDR on cards, should also pay 25 bps for UPI, as subsidies aren’t needed given UPI’s popularity and lower cost. In March, PCI wrote to PM Modi highlighting that the government’s Rs 1,500 crore subsidy covers only a small part of the Rs 10,000 crore needed annually to sustain UPI. Ongoing investment in innovation, cybersecurity, compliance, and infra justifies the 25 bps MDR for large merchants. Banks used to charge 30 bps on UPI transactions before it was waived off completely by the FM in 2020. Sources say the government will likely allow banks to charge MDR on large merchants soon, but no exact timeline has been set. Queries sent to RBI and the Finance Ministry received no response. As per sources, the policy is still at a deliberation stage, and no final decision has been made by the Finance Ministry or RBI. Policy decisions may change or evolve before formal notification. Despite soaring UPI volumes, the current revenue model is unsustainable, causing strain on banks, Payment Aggregators, and Payment System Providers (PSPs). Introducing MDR could provide crucial support to banks and enable a revenue-sharing model that benefits PAs, PGs, and PSPs.

Razorpay, CRED, Swiggy among 30 startups in Startup Policy Forum

EntrackrEntrackr · 8m ago
Razorpay, CRED, Swiggy among 30 startups in Startup Policy Forum
Medial

India’s startup ecosystem has gained a unified platform with the launch of the Startup Policy Forum (SPF), an industry alliance designed to promote collaboration between policymakers and leading ventures. SPF brings together 30 of India’s leading startups across varied sectors, including Razorpay, CRED, Pine Labs, Groww, OYO, Swiggy, Practo, Dream11, MPL, Cars24, CarDekho, Acko, Ixigo, Livspace and Jupiter. "Our startups are driving transformative change by democratizing business and converting job seekers into job creators. We are glad to see many founders joining the Startup Policy Forum (SPF), which should reinforce India’s global leadership in the new-age economy. The forum should play a pivotal role in India’s journey to become Viksit Bharat by 2047 under the visionary leadership of Prime Minister Shri Narendra Modi," said Piyush Goyal, Minister of Commerce and Industry. Founded by former Peak XV executive and public policy expert Shweta Rajpal Kohli, the Forum will do initiatives to promote India’s startup ecosystem on a global stage. The Forum will limit its members to 100 select startups in its initial phase. Over 30 rapidly growing startups have already signed up as members. These include companies like Razorpay, CRED, Pine Labs, Groww, Acko, OYO, Swiggy, Practo, Dream11 and MPL, Cars24 and Cardekho, CureFoods, Livspace, Ixigo, Ultrahuman, Digantara, Invideo, Jupiter, OneCard, Mobikwik, Yubi, platform Progcap, Bluestone among others. The Forum aims to foster constructive collaboration between founders, policymakers, and regulators. SPF will use the government’s initiatives to position Indian startups on a global platform. SPF has also established four specialized councils: the Fintech Policy Council (FPC), Consumer and Commerce Council (CACC), Emerging Tech & AI Council (ETAC), and New-Age Public Companies Council (NPCC). These councils will focus on critical areas within the startup ecosystem, collaborating closely with relevant regulators and stakeholders to address unique challenges and opportunities in each sector.

Startup Policy Forum launches CNPC to support IPO-bound startups in India

EntrackrEntrackr · 21d ago
Startup Policy Forum launches CNPC to support IPO-bound startups in India
Medial

Startup Policy Forum launches CNPC to support IPO-bound startups in India CNPC will facilitate regulatory dialogue, conduct training on compliance and governance, and enable peer learning and policy guidance for founders and CXOs. The Startup Policy Forum (SPF), an alliance of over 50 Indian new-age companies, has launched the Centre for New-Age Public Companies (CNPC) to support startups transitioning from private to public markets. The platform aims to address regulatory, governance, and market-readiness challenges as India sees a growing pipeline of IPO-ready startups. The CNPC was formally launched in the presence of SEBI Chairman Tuhin Kanta Pandey during a high-level meeting with 20 startup founders and leaders in Mumbai. The initiative comes at a time when nearly 40 startups, with a combined valuation exceeding $90 billion, are expected to go public in the coming years. “India’s capital markets are witnessing a structural shift, with new-age and tech-driven companies increasingly dominating IPO pipelines and investor interest. The Centre will enhance readiness and resilience of new-age companies as they enter and thrive in public markets,” said Shweta Rajpal Kohli, President and CEO, Startup Policy Forum. SPF’s membership includes listed startups like Swiggy, ixigo, Ather Energy, and MobiKwik, with others such as Meesho, Groww, Curefoods, Bluestone, and PhysicsWallah also preparing to list. The CNPC aims to build market confidence, improve capital market preparedness, and enable India’s next generation of public tech companies.

Download the medial app to read full posts, comements and news.