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Government may bring back UPI MDR for large merchants: Who could be affected?
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Fusion42 · 17 July 2026 · Fusion42 review
India's government is considering reintroducing Merchant Discount Rate (MDR) fees on UPI transactions for large merchants, reversing a zero-MDR policy that has been in place. This regulatory shift would directly impact fintech payment platforms, aggregators, and large retailers who currently process UPI payments at zero cost.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
If you built a payments business on zero UPI MDR, your unit economics just broke. Large merchants will start paying fees again—you either absorb the cost and collapse your margin, or pass it on and watch your transaction volume drop to competitors who don't.
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1 source · 17 Jul 2026
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