Wire · operational-macro
UPI MDR: Banks To Monitor Merchants, Consumers Won't Bear The Charge
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Fusion42 · 24 September 2026 · Fusion42 review
The Indian Banks' Association (IBA) will implement a system to ensure consumers are not charged Merchant Discount Rate (MDR) on UPI transactions, with banks monitoring merchants. The Finance Ministry will engage with the IBA, merchants, and traders on the issue, while the GST Council may decide on GST applicability to MDR fees.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
You must adapt your payment solutions as banks enforce no MDR fees on UPI consumers, shifting cost management back to merchants and regulators. Prepare your merchant contract terms and compliance messaging to align with tighter enforcement and evolving GST rulings.
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1 source · 24 Sep 2026
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