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Wire · operational-macro

Indian Bank working on mechanisms to prevent UPI MDR being passed on to consumers

Published

1 October 2026

Topic

operational-macro

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at thehindubusinessline.com →

◆ Verified

Fusion42 · 1 October 2026 · Fusion42 review

An Indian bank is developing mechanisms to stop merchants from passing on the UPI merchant discount rate (MDR) fees to consumers, aiming to protect consumer interests and maintain fair transaction costs.

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 face a narrowed path in charging fees on UPI transactions as banks clamp down on passing MDR costs to consumers. This opens opportunity to design or promote truly zero-fee payment solutions that could win user loyalty.

◆ Coverage

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

◆ Related on Wire

◆ Topics

Fintechupimdrconsumer-protectionpayment-regulationfintech-india