Wire · operational-macro
India Opens Door to UPI Merchant Fees as Parliament Amends Six-Year Zero-MDR Law
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Fusion42 · 4 August 2026 · Fusion42 review
India's Parliament amended the Payment and Settlement Systems Act to allow the government to impose merchant discount rates (MDR) on UPI transactions, ending a six-year zero-fee mandate for large merchants, though fees are not imposed immediately. The amendment grants the executive branch authority to notify which payment modes remain exempt from MDR, shifting fee regulation towards the Reserve Bank of India.
This Wire brief sits within Fusion42's coverage of Fintech, and 40 sources have reported it between 19 Jul 2026 and 22 Aug 2026.
◆ ◆ The Wire takeaway
You face a new regime where charging for UPI transactions at large merchants is now legal and regulated by RBI, not Parliament. Prepare your pricing and compliance strategies now because payment companies that relied on zero-fee volumes must adapt quickly or lose revenue.
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40 sources · first reported 19 Jul 2026 · latest 22 Aug 2026
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