Wire · operational-macro

MDR on UPI transactions will not be passed on to consumers: Nirmala Sitharaman

22 September 2026 · By Derek Watson · Wire by Fusion42

Published

22 September 2026

Topic

operational-macro

◆ Sectors

Fintech

◆ Geography

India

◆ Source

Read at aninews.in →

◆ Verified

Fusion42 · 23 September 2026 · Fusion42 review

The Indian government clarified that the new Merchant Discount Rate (MDR) of 0.4% on UPI transactions above Rs 2,000 will not be passed on to consumers, ensuring free digital payments for small transactions and supporting payment ecosystem participants.

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 government’s promise to shield consumers from MDR costs means you can build UPI payment solutions with confidence that user fees won’t be a barrier. Focus on merchant partnerships and innovate on features above the 2,000 rupee threshold where MDR applies.

◆ Coverage

45 sources · first reported 19 Jul 2026 · latest 5 Oct 2026

◆ Related on Wire

◆ Topics

FintechUPImerchant-discount-ratedigital-paymentsfintech-regulationNPCI