Wire · operational-macro
UPI MDR framework needs rationalisation to protect public trust: IIT Bombay report
◆ Sectors
◆ Geography
◆ Source
◆ Verified
Fusion42 · 12 October 2026 · Fusion42 review
IIT Bombay's report warns that the current proposed merchant discount rate (MDR) framework for UPI transactions risks undermining public trust and advises rationalising MDR to balance revenue generation with user and merchant acceptance. It suggests limiting MDR charges mainly to large merchants and excluding credit servicing and loan repayments to support financial inclusion and digital payment growth in India.
This Wire brief sits within Fusion42's coverage of Fintech, and 45 sources have reported it between 19 Jul 2026 and 15 Oct 2026.
◆ ◆ The Wire takeaway
You face a narrowing window to influence UPI transaction fee rules as the MDR policy could limit your market if applied broadly. Focus now on tailoring fees to high-turnover merchants while protecting user adoption to keep your digital payments stable.
◆ Coverage
45 sources · first reported 19 Jul 2026 · latest 15 Oct 2026
◆ Related on Wire
◆ Topics