UPI

On this episode of Macro Matters, host Ankur Bhardwaj is joined by A K Bhattacharya, Sanjeeb Mukherjee and Archis Mohan to unpack some of the biggest developments shaping India’s economy and politics.

NPCI has postponed the levy of MDR on select UPI merchant transactions, originally due from October 15, while leaving the proposed fee structure unchanged

NPCI has delayed the rollout of MDR fees on select UPI merchant payments until after Diwali. What is the fee, who pays it, and why has the implementation been postponed?

Proposed merchant discount rate (MDR) framework for Unified Payments Interface (UPI) transactions needs to be rationalised before implementation to protect public trust in the digital payments system, according to a report. UPI, a public digital infrastructure, has generated significant convenience for users and productivity gains for the economy, with its long-term economic benefits outweighing the incremental income that could accrue from merchant transaction fees, the report titled 'UPI at a Crossroads: Reintroducing the MDR' released by IIT Bombay said. It cautioned that public trust in UPI could be undermined if the proposed MDR framework is implemented in its present form, stressing the need to ensure that the digital payments platform does not attract negative sentiment among users. The report suggested that merchants with annual turnover of Rs 50 crore or more are mandated by law to provide UPI as a means for accepting payments. Accordingly, the remuneration for the UPI ...

UPI MDR may be deferred to January 1, while the exemption for small merchants could be expanded to businesses with annual turnover of up to ₹40 lakh

RBI Governor Sanjay Malhotra said a small MDR on select UPI payments is unlikely to materially affect transaction volumes as the new charge takes effect from October 15

The proposed expansion will increase the Index of Services Production's coverage from about 60 per cent to 78.4 per cent of services gross value added

Jio Payment Solutions is prioritising large enterprises and profitable segments as it seeks to expand in India's crowded digital payments processing market

LocalCircles estimates UPI transaction volumes could fall 4% and value 10% as consumers shift to cards, cash and bank transfers if merchants pass on the MDR

Clocks highest daily avg volume of over 800 mn transactions

October brings five financial changes that could affect consumers and businesses differently. LPG consumers need biometric Aadhaar authentication to access subsidised refills. Some SBI customers will

UPI processed an average 802 million transactions a day in September, up about 1 per cent from August, while transaction value also remained firm despite the MDR backlash

AICPDF and AIMRA have withdrawn from the October 2 protest after urging the government to defer the proposed UPI MDR and raise the threshold limit to ₹5 lakh

Finance minister discusses Qatar's $10 billion investment commitment, proposed BIT and FTA talks, while seeking wider adoption of India's UPI payment system

Investable household assets rose to nearly $5.2 trillion in FY25, while individual investors' share of the Indian equity market reached a two-decade high of 18.7%

18% GST on merchant discount rate could be reviewed

The core banking and card processing platform is exploring credit line on UPI and other use cases as India becomes one of its priority markets for FY27

Justice Bagchi asked whether the charge was a tax or fee and, if it was neither, what was the legal basis for imposing it. He also questioned the nature of the service for which the payment was being

The Supreme Court has asked the Centre to explain the basis for UPI charges above ₹2,000, but refused to stay the new framework set to take effect from October 15

Mobile phone retailers across India plan to observe October 2 as "No UPI Day" in protest against 0.4 per cent merchant discount rate charges on UPI transactions, a senior official of industry body AIMRA said. The government has introduced a 0.4 per cent fee on UPI transfers exceeding Rs 2,000 to merchants from October 15, while exempting person-to-person transactions as well as small payments from any charges. "The All India Mobile Retailers Association (AIMRA) has called for a 'NO UPI DAY' on October 2, 2026, to highlight the concerns of mobile retailers regarding the 0.4 per cent Merchant Discount Rate (MDR) applicable to eligible merchant UPI transactions," AIMRA Vice President and President for Delhi NCR region, Tarvinder Singh, said in a statement. He said retailers will symbolically cover UPI QR Codes with black cloth and refrain from accepting UPI payments on Gandhi Jayanti. According to a representation sent to Finance Minister Nirmala Sitharaman by AIMRA, the move to impos