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UPI MDR: Finance Ministry Denies US Pressure Claims, Says Foreign Credit Cards Get No ...

Published

19 September 2026

Topic

operational-macro

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at knnindia.co.in →

◆ Verified

Fusion42 · 19 September 2026 · Fusion42 review

India's Finance Ministry denies US pressure influenced the introduction of a 0.4% Merchant Discount Rate (MDR) on select UPI transactions, affirming that only RuPay credit cards are allowed on UPI for credit transactions. The MDR aims to sustain the UPI ecosystem, support smaller domestic payment companies, and maintain free small-value transactions.

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 face a new regulatory cost on UPI transactions above Rs 2,000 that shifts revenue towards RuPay and domestic players, opening a door to rethink your payment partnerships or pricing strategies in India.

◆ Coverage

27 sources · first reported 15 Sep 2026 · latest 5 Oct 2026

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◆ Topics

Fintechupimdrrupayfintech-regulationpayment-systems