Wire · regulatory
MDR on UPI: Enabling law passed, but framework remains unclear
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Fusion42 · 12 August 2026 · Fusion42 review
India's Parliament passed a law enabling the government to impose a Merchant Discount Rate (MDR) on UPI and RuPay debit card transactions, removing the previous statutory prohibition. The actual MDR framework is yet to be defined, with considerations around thresholds, cost-bearing between consumers and merchants, and impacts on market competition ongoing.
This Wire brief sits within Fusion42's coverage of Fintech, and 12 sources have reported it between 19 Jul 2026 and 12 Aug 2026.
◆ ◆ The Wire takeaway
You face a change in how UPI payments might carry transaction fees that the government can set without new laws. This opens a path to revenue but also competition risks, so act on designing your payment models and partnerships now.
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12 sources · first reported 19 Jul 2026 · latest 12 Aug 2026
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