Credit card route to UPI may come at a price for merchants

 A top payment industry source said that the RBI recent decision is to allow credit cards for payments through the Unified Payment Interface (UPI) is likely to attract a merchant discount rate (MDR). For smaller merchants there will be a subsidy for MDR. UPI will not be only a payment instrument but also it will be lending platform for the credit card linkage. Government said that the MDR will be zero for payment products but not for lending products