Wire · operational-macro
UPI MDR framework needs rationalisation to protect public trust: IIT Bombay report
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Fusion42 · 11 October 2026 · Fusion42 review
The IIT Bombay report calls for rationalisation of the proposed Merchant Discount Rate (MDR) for UPI transactions to maintain public trust in India's digital payments. It suggests limiting MDR to merchants with turnovers above Rs 50 crore, exempting critical services and credit repayments to protect financial inclusion, and balancing revenue generation with user acceptance.
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
The MDR debate in India signals a regulatory balancing act that fintech founders must watch as it reshapes UPI's revenue model and merchant incentives. You need to prepare for a differentiated fee structure that shields smaller merchants and financial services, opening a focused opportunity in high-turnover merchant payments.
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45 sources · first reported 19 Jul 2026 · latest 15 Oct 2026
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