Wire · operational-macro
0.4% UPI charge for some merchants: Could this push India back towards cash?
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Fusion42 · 19 September 2026 · Fusion42 review
India's government has introduced a 0.4% Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000, with a cap for high-value transactions and exemptions for consumers and smaller transactions. This aims to create a sustainable business model to support UPI infrastructure and security investments without charging users for small transactions widely used across the country.
This Wire brief sits within Fusion42's coverage of Fintech, and 45 sources have reported it between 19 Jul 2026 and 5 Oct 2026.
◆ ◆ The Wire takeaway
Your UPI-based payments will face new merchant fees on higher-value transactions, increasing risks that merchants might pass costs to consumers and slow digital payment growth in India. Watch for opportunities to offer transparent, low-cost solutions that reassure small vendors and protect users from hidden charges.
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45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026
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