Wire · operational-macro
UPI MDR: Where will 0.4% fee go? Check full breakdown, what FM Nirmala Sitharaman says
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Fusion42 · 26 September 2026 · Fusion42 review
India will introduce a 0.4% Merchant Discount Rate (MDR) on specified Unified Payments Interface (UPI) transactions above Rs 2,000 starting October 15, 2026, with the collected fee shared among banks, payment service providers, and UPI app providers. The fee is a merchant charge, not a tax, and customers are not to bear it.
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
You in fintech need to prepare merchant clients for an unavoidable cost that reshuffles revenue within India's digital payments chain. This creates a new business context where banks and UPI app providers gain steady income, shifting negotiation power you must address now.
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45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026
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