New Delhi, Sep 17 (IANS) The recent changes related to the Merchant Discount Rate (MDR) on UPI transactions need to balance the objective of maintaining secure digital payments with the increased capital expenditure required to support the system, CII President R Mukundan said on Thursday.
Speaking to IANS, Mukundan said UPI has significantly improved the ease of financial transactions, while stressing that the security of transactions must remain protected as the digital payments ecosystem scales.
Mukundan said he would not comment in detail on the MDR issue as finance experts are better placed to determine the appropriate way forward. He expressed confidence that a meaningful solution would emerge, adding that the key challenge is to meet the objective of transaction security while addressing the additional capital spending needed.
On the BRICS Summit, Mukundan said the meeting brought member countries together and created greater warmth and alignment in discussions. He said the grouping has expanded significantly beyond its original membership and that the BRICS Business Forum saw positive engagement across four tracks, ranging from agriculture to high technology.
According to Mukundan, the central message emerging from the business forum was the need to move from “intent to outcomes”, particularly in trade and investment. He pointed out that BRICS countries account for around 40 per cent of global GDP but currently account for about 26 per cent of global trade, indicating scope for greater intra-BRICS commerce.
He said reducing non-tariff barriers, aligning quality standards, standardising approval processes and improving the movement of goods across borders would be important for increasing trade among BRICS economies. Mukundan also highlighted the potential for greater cross-border investment, citing the complementarity between India’s demand for critical minerals and the mineral resources available in Latin American BRICS economies.
He said investment opportunities need to be identified and supported with adequate financing and market access, while government-to-government arrangements could help provide greater protection for investments across borders.
–IANS
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