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Banks to ensure UPI MDR isn't passed to consumers: Govt

Published

24 September 2026

Topic

regulatory

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at m.rediff.com →

◆ Verified

Fusion42 · 24 September 2026 · Fusion42 review

The Indian government has mandated that banks ensure merchants do not pass the UPI merchant discount rate (MDR) fees to consumers, aiming to protect consumers from extra charges on UPI payments.

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

You need to adjust your pricing strategy to absorb UPI MDR costs, as banks cannot let merchants pass these fees to consumers anymore. This limits your ability to shift payment fees to end users and calls for closer negotiation with banks on transaction costs.

◆ Coverage

45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026

◆ Related on Wire

◆ Topics

Fintechupimdrpaymentsbanking-regulationsconsumer-protection