Wire · operational-macro
India's UPI MDR Policy: Finance Ministry Clarifies Stance Amid US Pressure Allegations
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Fusion42 · 17 September 2026 · Fusion42 review
India's Finance Ministry denies US pressure influenced the 0.4% Merchant Discount Rate (MDR) on select UPI transactions and reaffirms that only RuPay credit cards are allowed on UPI to support domestic payments. The MDR aims to provide a sustainable revenue model for smaller domestic companies and protect India's digital payment sovereignty.
This Wire brief sits within Fusion42's coverage of Fintech, and 27 sources have reported it between 15 Sep 2026 and 5 Oct 2026.
◆ ◆ The Wire takeaway
You must adapt your payment product integration for India’s tighter UPI ecosystem favouring RuPay credit cards and new MDR charges on transactions over Rs 2,000. Ignoring this risks alienating key merchant segments and missing out on the growing domestic payments market.
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27 sources · first reported 15 Sep 2026 · latest 5 Oct 2026
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