MDR on UPI: The small fee that’s causing a big debate

Dear Reader, UPI is entering a new pricing phase from October 15, with a 0.4% MDR on eligible merchant transactions above Rs 2,000, while consumers will continue to pay no fee. The move is aimed at creating a revenue stream to support UPI’s infrastructure, cybersecurity, and fraud-prevention costs, but has sparked debate among industry leaders over who should bear the cost and how the revenue should be shared among banks, payment apps and aggregators. The announcement had an immediate impact on