Wire · operational-macro
Small MDR fee unlikely to dent UPI volumes, says RBI Governor Sanjay Malhotra
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Fusion42 · 7 October 2026 · Fusion42 review
The Reserve Bank of India governor affirmed that the recently introduced small merchant discount rate (MDR) on UPI transactions above Rs 2,000 has not decreased transaction volumes and is unlikely to do so. He also highlighted expectations for strong bank credit growth, managed liquidity concerns, and confidence in India's macroeconomic fundamentals despite current global headwinds.
This Wire brief sits within Fusion42's coverage of Fintech, and 44 sources have reported it between 19 Jul 2026 and 7 Oct 2026.
◆ ◆ The Wire takeaway
You can treat the small UPI merchant fee as a settled fact unlikely to throttle transaction growth this quarter. Indian fintechs focused on digital payments can pivot now to compete on value, not fee waivers.
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44 sources · first reported 19 Jul 2026 · latest 7 Oct 2026
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