Reserve Bank of India Deputy Governor T. Rabi Sankar has dismissed concerns that apprehensions around the Merchant Discount Rate will push consumers and merchants back toward cash transactions. Speaking on the evolution of the national digital payments landscape, Sankar noted that the efficiency of digital modes outweighs cost considerations.
Digital Payments Momentum
The central bank official emphasized that the convenience, speed, and widespread adoption of digital payment channels are now deeply ingrained within the economy. Key aspects highlighted by the central authority include:
Digital payment modes have achieved structural integration across the national economy. Stakeholders continue prioritizing speed and operational efficiency over cost debates. The shift toward a less-cash ecosystem remains supported by resilient infrastructure.
The central bank maintains confidence that momentum toward reduced physical currency usage is irreversible despite ongoing regulatory discussions surrounding MDR.