Wire · operational-macro
UPI MDR: From 0.40% to 0.08% what IIT Bombay report has proposed and why it wants new ...
12 October 2026 · By Derek Watson · Wire by Fusion42
Published
12 October 2026
Topic
operational-macro
◆ Sectors
Fintech
◆ Geography
India
◆ Source
◆ Verified
Fusion42 · 13 October 2026 · Fusion42 review
An IIT Bombay report warns that the revised MDR on UPI transactions could lead to higher retail prices for consumers despite merchants being barred from passing on charges, and proposes reducing the MDR from 0.40% to 0.08% targeting only large online merchants with turnover above ₹50 crore.
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
You must prepare for UPI fee cuts targeting large merchants that shift costs away from banks onto consumers indirectly via pricing. This opens a market for fintechs that help merchants manage or absorb digital payment fees smarter.
◆ Coverage
45 sources · first reported 19 Jul 2026 · latest 15 Oct 2026
- Kerala Assembly Passes Motion Against UPI MDRm.rediff.com · 15 October 2026
- UPI fee set to raise costs for some merchants as industry awaits rolloutlivemint.com · 14 October 2026
- UPI charges: the economics of a digital public goodlivemint.com · 13 October 2026
- UPI MDR may push costs on to consumers despite surcharge ban: IIT Bombay reportenglish.publictv.in · 12 October 2026
- UPI MDR date shifting to January 2027? Know what it means for Rs 2,000+ paymentszeebiz.com · 8 October 2026
- B2B platform Pneucons claims new MDR could eat 94% of its marginscnbctv18.com · 5 October 2026
- UPI Value Could Fall 10%, Volumes 4% After MDR Rollout: Surveybusinessworld.in · 4 October 2026
- MDR on UPI unlikely to trigger fee hikes: World Bank's Neelkanth Mishraianslive.in · 3 October 2026
- Supreme Court allows UPI Merchant Discount Rate to proceedorganiser.org · 30 September 2026
- MDR on UPI payments above Rs 2000: Supreme Court to hear challenge plea on Mondaybfsi.economictimes.indiatimes.com · 28 September 2026
- SC to Hear Plea Challenging 0.4% MDR on UPI Payments Above Rs 2000 on Mondaypragativadi.com · 27 September 2026
- SC to hear on Sept 28 plea challenging imposition of MDR on UPI payments above Rs 2,000newindianexpress.com · 27 September 2026
- UPI MDR Is Charged to Merchants -but Will Consumers Ultimately Pay?countryandpolitics.in · 27 September 2026
- MDR on UPI payments above Rs 2000 will not be passed on to consumers: Reportdeccanherald.com · 24 September 2026
- UPI charges could reverse digital payments gains, push…inkl.com · 21 September 2026
- MDR Charges Fuel Widespread Opposition; 'No More UPI Payments Above Rs ...odishabytes.com · 19 September 2026
- 0.4% UPI charge for some merchants: Could this push India back towards cash?deccanherald.com · 19 September 2026
- D2C brands, brokers flag concerns over proposed UPI MDRtradingview.com · 19 September 2026
- Understanding UPI MDR: Impact On Digital Payments And Small Businessesm.rediff.com · 18 September 2026
- UPI MDR rollout: Govt weighs checks to prevent merchants passing cost to consumersmoneycontrol.com · 18 September 2026
- Finance Ministry rejects US pressure charge over UPI fees, says RuPay retains exclusive ...psuwatch.com · 17 September 2026
- Government digs in on MDR for UPIdailypioneer.com · 17 September 2026
- Rs 15,000 crore: What the UPI levy will fetch, and why the government is backing itindianexpress.com · 17 September 2026
- Finance Ministry: UPI MDR changes: Govt debunks 'foreign influence' claimsap7am.com · 16 September 2026
- One 97 Communications Eyes Gains as India Introduces Fee for Digital Merchant Transactionssahi.com · 16 September 2026
- Rahul Gandhi alleges UPI move opens door to charges, accuses Modi govt of yielding to US ...newindianexpress.com · 15 September 2026
- UPI charges above ₹2000? Government opens door to new merchant fee regimegovernment.economictimes.indiatimes.com · 15 September 2026
- Targeted MDR on high‑value UPI payments could unlock Rs 15,000–30,000 crore revenuesocialnews.xyz · 26 August 2026
- Debit card rule may act as template to shield UPI users from MDR feebusiness-standard.com · 22 August 2026
- UPI should remain free: Expert on why MDR could push merchants and consumers back to cashbusinesstoday.in · 22 August 2026
- The Rs 606 problem: What happens when India puts a price on UPIindiatoday.in · 22 August 2026
- India Made UPI Free. Now Comes the Hard Part: Who Pays to Keep It Running?openthemagazine.com · 17 August 2026
- Decline in UPI Usage as Cash Transactions Increase in Indiaindianewsnetwork.com · 17 August 2026
- As Govt. mulls MDR on UPI, data shows cash usage quickeningpressreader.com · 16 August 2026
- Who Pays For Free UPI? Parliamentary Panel Seeks MDR On High-Value Transactionsndtvprofit.com · 13 August 2026
- UPI Charges May Return For High-Value Transactions: Govt Weighs Two Optionsnews.abplive.com · 13 August 2026
- UPI sustainability: Govt weighs MDR on select transactions, tiered incentive planianslive.in · 13 August 2026
- UPI costs: Govt weighs MDR revival, tiered incentives to cut subsidy burdenmoneycontrol.com · 13 August 2026
- MDR on UPI: Enabling law passed, but framework remains unclearlegal.economictimes.indiatimes.com · 12 August 2026
- UPI transactions remain free for consumers: FM Sitharamannagalandpost.com · 11 August 2026
- DH Deciphers | What potential MDR charges on UPI mean for customers, merchantsdeccanherald.com · 8 August 2026
- UPI to remain free for consumers, small merchants unaffected by MDR debatethestatesman.com · 7 August 2026
- UPI MDR Alarm: Sitharaman's Stunning ₹30L Cr Replyhindustanherald.in · 7 August 2026
- MDR fees on UPI, RuPay transactions come amid US pressure for level playing fielddeccanherald.com · 6 August 2026
- UPI merchant charges? Nirmala Sitharaman tables Payment and Settlement Systems Billenglish.mathrubhumi.com · 6 August 2026
- Somebody must bear the cost of UPI transactions: RBI guvnewindianexpress.com · 5 August 2026
- UPI MDR May Generate ₹16000 Crore a Year; SBI Seen as Biggest Gaineroutlookbusiness.com · 5 August 2026
- Govt eyes fees on UPI transactions over Rs 2000udayavani.com · 5 August 2026
- Can UPI transactions be charged? What Centre's new taxation bill means for users & merchantstheprint.in · 5 August 2026
- UPI could turn costlier as Centre introduces Bill to levy MDRdeccanherald.com · 4 August 2026
- India moves closer to allowing merchant fees on UPI paymentspakistantoday.com.pk · 4 August 2026
- Proposed Legislation Revives MDR Hopes for Large-Value UPI Transactionspsuindia.com · 4 August 2026
- India paves way for return of merchant fees on digital paymentsbfsi.economictimes.indiatimes.com · 4 August 2026
- Finance Ministry introduces Bill to enable MDR on UPI and digital paymentsmoneycontrol.com · 4 August 2026
- Merchant Charges On Digital Payments May Be Back As Centre Set To Amend Zero-MDR Policyndtvprofit.com · 4 August 2026
- Your UPI to Cost More? Govt Proposes Payment Act Change That Could Bring ...english.gujaratsamachar.com · 4 August 2026
- Paytm & MobiKwik Impacted as Government Proposes Zero MDR and No Fees for Digital ...sahi.com · 3 August 2026
- Govt takes first step to levy MDR on UPI; bill proposes to repeal earlier amendment of Zero MDRmoneycontrol.com · 3 August 2026
- Don't put a toll on UPI: Why merchant discount rate isn't the answerm.economictimes.com · 20 July 2026
- India Plans to End 6-Year Fee Waiver on UPI Paymentsfintechgate.net · 19 July 2026
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◆ Topics
Fintechupimdrdigital-paymentsfee-reformconsumer-pricesindia