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Wire · operational-macro

Risk Of India Returning To Cash Economy: Retailers' Body On UPI Fee

Published

16 September 2026

Topic

operational-macro

Sectors

Fintech

Geography

India

Source

Read at ndtv.com

Verified

Fusion42 · 16 September 2026 · Fusion42 review

The Retailers Association of India warns that the new Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 could push small merchants to prefer cash payments, potentially reversing six years of digital payment adoption in India. The National Payments Corporation of India has introduced fees on certain UPI transactions affecting mainly merchants, with consumer payments remaining free.

This Wire brief sits within Fusion42's coverage of Fintech, and 42 sources have reported it between 19 Jul 2026 and 16 Sep 2026.

◆ The Wire takeaway

Merchants accepting UPI payments will face new fees that may push many back to cash, making your payment acceptance policy a crucial battleground this week. This change scrambles customer payment choices and opens a door to offer new cost-effective digital payment alternatives now.

Coverage

42 sources · first reported 19 Jul 2026 · latest 16 Sep 2026

Related on Wire

Topics

Fintechupitransaction-feemerchant-discount-ratedigital-paymentsindiaretail