Wire · operational-macro
MDR on UPI not under external pressure, says Govt Sources
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Fusion42 · 18 September 2026 · Fusion42 review
The Indian government denies that the new Merchant Discount Rate (MDR) on UPI transactions was imposed due to external pressure, clarifying that GST on MDR is adjustable and that the fees aim to support competition and sustainability among smaller fintech players.
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 must factor the new MDR on UPI into your cost model now that the government confirmed MDR is meant to enable smaller fintechs and is not influenced by foreign pressure. Pricing discussions with payment aggregators open a door for early negotiation before the October rollout.
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27 sources · first reported 15 Sep 2026 · latest 5 Oct 2026
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