Payment companies have this big question for the government

Bengaluru: Two days after the Union Budget, payments companies and fintech startups are approaching the RBI and the government to review its proposal of removing bank charges on electronic payments, saying it will harm adoption and industry growth, three people aware of the matter said.
The Payments Council of India (PCI), under Internet and Mobile Association of India (IAMAI) — the internet lobby group — will write to the central bank and the government, opposing the proposal of removing merchant discount rate (MDR) on digital payments.
In a statement on Monday evening, PCI said the Budget proposal on MDR will be detrimental to companies in the payments ecosystem and that it could lead to a collapse for many companies. This may also drag the growth rate of digital payments companies to single digits, these people added.