New Delhi, September 17 (IANS). The recent changes related to Merchant Discount Rate (MDR) on UPI transactions will require a balance between the objective of maintaining a secure digital payments system and the increased capital expenditure required to support the system. This statement was given by CII President R. Mukundan gave on Thursday.
Speaking to IANS, Mukundan said that UPI has made financial transactions much easier. He stressed that as the digital payments ecosystem grows, the security of transactions should not be compromised.
On the MDR issue, Mukundan said he would not comment on it in detail as finance experts were in a better position to decide the appropriate way forward. He expressed confidence that a meaningful solution will emerge. He said the main challenge is to meet the need for additional capital expenditure while ensuring the security of the transaction.
On the BRICS summit, Mukundan said the meeting brought the member countries together and created an atmosphere of greater warmth and better coordination in the discussions. He said that BRICS has expanded far beyond its original member countries and the BRICS Business Forum witnessed positive participation in four sectors ranging from agriculture to high technology.
According to Mukundan, the central message emanating from the business forum was the need to “move from intention to results”, especially in the area of trade and investment. He said that BRICS countries contribute about 40 percent to the global GDP, but currently their share in global trade is about 26 percent. This shows ample scope for increasing trade among BRICS countries.
He said reducing non-tariff barriers, harmonizing quality standards, standardizing clearance processes and improving movement of goods across borders will be important to increase trade among the BRICS economies. Mukundan also highlighted the potential for greater cross-border investment. He cited the example of complementarity between India's demand for critical minerals and the mineral resources available in the Latin American BRICS economies.
–IANS
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