UPI MDR should be GST-exempt, says former RBI Governor Rangarajan

Former RBI Governor C Rangarajan has argued that the Merchant Discount Rate (MDR) on UPI transactions should not attract Goods and Services Tax. He made the remarks while launching the book 'Cashless Nation: How UPI Changed Everything', authored by B Sambamurthy and Santanu Paul.

Rangarajan's position reflects concerns about the tax burden on digital payment infrastructure, which has been central to India's push toward a cashless economy. The statement adds to ongoing discussions about optimal taxation policies for digital payment systems.