Wire · operational-macro
Finance Ministry introduces Bill to enable MDR on UPI, digital payments
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Fusion42 · 1 September 2026 · Fusion42 review
India's Finance Ministry has introduced the Payment and Settlement Systems (Amendment) Bill, 2027, enabling the government to impose Merchant Discount Rate (MDR) fees on digital payments like UPI and RuPay, reversing a 2020 ban. The Bill does not set MDR rates but allows future government notification to determine which digital payment methods will attract MDR, particularly targeting large merchants and high-value transactions.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
The restoration of MDR on digital payments shifts costs back to merchants, making you in payments or merchant services reassess pricing models and customer targets quickly. Large merchant-focused fintech startups should prepare for a new fee structure that could reshape payment volumes and customer behaviour.
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1 source · 4 Aug 2026
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