Sitharaman Defends UPI MDR Decision Amidst Opposition Criticism

Finance Minister Nirmala Sitharaman clarified that the new 0.4% Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 is a decision made by the payment ecosystem to ensure sustainability, not a tax or government revenue source. The MDR is to be paid by merchants, with exemptions for small merchants and capped fees for large transactions, aiming to sustain the digital payments framework in India.

This Wire brief sits within Fusion42's coverage of Fintech, and 45 sources have reported it between 19 Jul 2026 and 5 Oct 2026.