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Wire · operational-macro

UPI could turn costlier as Centre introduces Bill to levy MDR

4 August 2026 · By · Wire by Fusion42

Published

4 August 2026

Topic

operational-macro

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at deccanherald.com →

◆ Verified

Fusion42 · 5 August 2026 · Fusion42 review

The Indian government has introduced a Bill to amend the Payment and Settlement Systems Act, 2007, which will allow levying Merchant Discount Rate (MDR) charges on UPI and other digital payments where previously a blanket ban existed.

This Wire brief sits within Fusion42's coverage of Fintech, and 40 sources have reported it between 19 Jul 2026 and 22 Aug 2026.

◆ ◆ The Wire takeaway

This MDR levy will increase costs for your UPI-based transactions and could change pricing competition among payment apps. You must prepare for negotiation shifts with merchants and rethink your transaction pricing strategy quickly.

◆ Coverage

40 sources · first reported 19 Jul 2026 · latest 22 Aug 2026

◆ Topics

Fintechupimdrdigital-paymentsregulationindia