Wire · operational-macro
SBI expects UPI MDR to recover costs and generate surplus revenue
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Fusion42 · 24 September 2026 · Fusion42 review
State Bank of India (SBI) expects the new 40 basis-point Merchant Discount Rate (MDR) on UPI person-to-merchant transactions above ₹2,000, effective October 15, to recover processing costs and potentially generate surplus revenue. This MDR change is anticipated to generate over ₹20,000 crore for the payments ecosystem, with major Indian banks like SBI, Yes Bank, and Axis Bank among the primary beneficiaries.
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 need to prepare for a direct revenue shift in UPI payments as SBI and other Indian banks start capturing fees on transactions over ₹2,000. This is a fresh opportunity to engage banks as paying partners and anticipate changes in merchant transaction behaviour to protect your transaction volumes.
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45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026
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