Wire · operational-macro
UPI MDR burden will fall on merchants, not users: FM Nirmala Sitharaman
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Fusion42 · 30 August 2026 · Fusion42 review
Finance Minister Nirmala Sitharaman clarified that the Merchant Discount Rate (MDR) fee of 0.3-0.5% on UPI transactions above Rs 2,000 will be charged to merchants meeting certain turnover thresholds, not to customers, enabling banks and fintechs to invest in infrastructure and security.
This Wire brief sits within Fusion42's coverage of Fintech, and 8 sources have reported it between 6 Aug 2026 and 10 Aug 2026.
◆ ◆ The Wire takeaway
You must now plan for merchants paying fees on high-value UPI transactions, which shifts revenue and cost structures in fintech and banking. Banks and fintech companies can invest more in tech and security as this change makes UPI financially sustainable.
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8 sources · first reported 6 Aug 2026 · latest 10 Aug 2026
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