Wire · operational-macro
New UPI MDR policy will not affect three-fourths of merchants: NPCI chief
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Fusion42 · 24 September 2026 · Fusion42 review
The new Merchant Discount Rate (MDR) policy for UPI transactions above Rs 2,000 in India will not impact around 75% of merchants who do not process transactions of this size. The MDR costs are expected to be borne mainly by larger businesses generating over Rs 1,000 crore annually, with efforts underway to prevent these costs from being passed on to consumers.
This Wire brief sits within Fusion42's coverage of Fintech, and 45 sources have reported it between 19 Jul 2026 and 5 Oct 2026.
◆ ◆ The Wire takeaway
The majority of smaller merchants in India will stay unaffected by UPI transaction fees, but larger merchants now face new costs. You should adjust your pricing strategy if you serve enterprise clients or build payment solutions for Indian SMBs.
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45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026
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