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The Latest Breaking News from UPI

UPI charges could reverse digital payments gains, push users back to cash, says ex-NITI VC Rajiv Kumar

Former NITI Aayog vice-chairman Rajiv Kumar has urged the government to keep UPI merchant payments free for a few more years, warning that even a small fee could push transactions back towards cash. His comments come after the government announced a 0.4% MDR on UPI merchant payments above Rs 2,000…

The Economic Times

UPI vs credit cards - How India's payments system is boosting savings and benefitting multiple stakeholders

The Anglo-Saxon economies of the US, United Kingdom and Australia show a reduction in household savings rates along with a growth in credit card usage, while European nations such as Germany, France and the Netherlands— that encourage the use of debit cards over credit cards—report a higher household savings rate.

The Economic Times

Petrol pump UPI payments above Rs 2,000 to stop from October 16 in Madhya Pradesh: Dealers cite 0.4% MDR charge; debit and credit cards to remain available

Petrol pump UPI payments: Petrol pump dealers in Madhya Pradesh will stop accepting UPI payments above Rs 2,000 from October 16, citing a proposed 0.4 per cent Merchant Discount Rate (MDR). Fuel retailers say their narrow profit margins make it difficult to absorb the additional cost. Customers can continue to…

The Economic Times

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Hafta 607: Who pays for UPI? Is the UCC even ‘uniform’?

This week on Hafta, Abhinandan Sekhri, Manisha Pande and Rinchen Norbu are joined by Anupam Manur, Professor of Economics at the Takshashila Institution, and Mihira Sood, Supreme Court lawyer specialising in women’s rights.

Newslaundry

'Everything on record': Parliamentary Finance panel chief defends unanimous Standing Committee report amid UPI MDR row

Bhartruhari Mahtab defended the finance committee's report on Demands for Grants. Congress MP Manish Tewari rejected claims of opposition support for MDR proposals. The committee's report explored a possible revenue model for digital payments. The government is currently exploring options for restoring MDR on certain transactions. New UPI MDR framework…

The Economic Times

Pass the buck to RBI, banks: Let the savings from digital payments fund UPI costs, not consumers

The RBI's MDR introduction on UPI transactions above ₹2,000 faces criticism. This move may discourage digital payments and encourage a return to cash. Savings from reduced currency printing should cover fintech expenses instead. Digital payments have significantly reduced RBI's currency printing expenditure. Incentivizing digital payments is crucial for curbing the…

The Economic Times

UPI MDR from October 15: Govt plans daily monitoring to stop merchants passing 0.4% fee to customers

The government is in negotiations with payment aggregators over new UPI transaction fees, ensuring that these charges will not be imposed on consumers, as stated by officials. The finance ministry will closely monitor adherence to the new guidelines on a daily basis. Revenue generated will aid small merchants in embracing…

The Economic Times

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MDR charges on 5 key services: Railway tickets, mobile bills, fuel and more

Select UPI merchant transactions will incur a Merchant Discount Rate. However, transactions under two thousand rupees will remain free for small traders. A fixed fee of five rupees will limit the MDR for certain sectors, applying to merchants rather than consumers. Importantly, most UPI payments will still be without charge…

The Economic Times

Let UPI be! Why fix a payment system that isn’t broken?

S.N.A.F.U. = Situation normal all fouled up.

Newslaundry

FinMin allays fears of increase in cash transactions post UPI MDR levy: Sources

The Finance Ministry anticipates no rise in cash transactions following the UPI MDR implementation. Only a small percentage of total UPI volume will be affected by this new charge. RuPay debit card transactions will remain free, mitigating cash transaction concerns. The ministry will monitor to prevent MDR burden transfer to…

The Economic Times

No US pressure in UPI MDR decision; NPCI circular offers no advantage to foreign credit cards: FinMin

The Department of Financial Services (DFS) issued the clarification in response to observations in the US Trade Representative's (USTR) 2026 report on the inability of US electronic payment service providers to participate in the UPI ecosystem, including credit transactions on UPI, on a level playing field with RuPay.

The Economic Times

MDR on UPI not imposed due to external pressure, say govt sources

Officials clarified that there is no separate GST levied on MDR charges. While GST will apply to MDR on UPI transactions, businesses will be able to claim full input tax credit against it and set off the liability, meaning the government does not expect to earn any net revenue from…

The Economic Times

Zero MDR charge: 7 UPI transactions where you don't need to pay any fee

Starting from October 2026, a new Merchant Discount Rate framework will be introduced for specific UPI transactions. This framework is designed to categorize rates according to merchant industry types and transaction amounts. Fortunately, most daily UPI payments and small vendor transactions will still be exempt from these fees, allowing individuals…

The Economic Times

BharatPe backs new UPI MDR framework, distances itself from former CEO Ashneer Grover’s criticism

BharatPe supports the new UPI merchant transaction framework. The company clarified co-founder Ashneer Grover's views are his own. This new framework aims to improve digital payment economics sustainably. It will keep UPI free for consumers and protect small merchants. The changes will affect only a small percentage of person-to-merchant transactions.

The Economic Times

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The Economic Times

PVR INOX forced customer to pay only using UPI; he sends legal notice for refusing to accept cash

An Ahmedabad advocate has sent a legal notice to PVR INOX Ltd after its Palladium Mall cinema refused to accept cash for a movie ticket and food, forcing him to pay via UPI. The notice cites the RBI Act on legal tender and the Consumer Protection Act, and seeks a…

The Economic Times

Finance Ministry rejects US pressure claims over new UPI MDR, says RuPay has no special edge

India's Finance Ministry rejects claims of US influence on UPI payment charges. The new framework prioritizes RuPay credit cards for UPI transactions. This move aims to foster domestic competition and create a sustainable revenue model. Small merchants and certain transactions will remain exempt from the new charges. The government emphasizes…

The Economic Times

Paytm karo, back in vogue again: Can the stock reclaim IPO price after 5 years and 480% rally?

Paytm shares have rebounded over 480% from their lifetime low but remain 20% below the Rs 2,150 IPO price. The introduction of MDR on select high-value UPI transactions could create a new revenue stream for the fintech, while merchant lending, operating leverage and AI initiatives may offer additional growth avenues.

The Economic Times

Attempt to divert attention from backlash over UPI tax: Congress on govt's Parl panel claims

Congress denies supporting a parliamentary committee's report on UPI payment fees. The party accuses the government of diversion after a significant public backlash. Government sources claim Congress MPs backed a tiered Merchant Discount Rate framework. Congress MPs state no specific UPI tax proposal was discussed. The opposition demands a rollback…

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The Economic Times

Decoding MDR’s impact; EV bikes’ policy change sparks debate

Happy Thursday! The return of MDR is set to change UPI's market share game. This and more in today's ETtech Morning Dispatch.

The Economic Times

New MDR norms for UPI to add more revenue, bottom line to business: Paytm CEO

The government has introduced a 0.4% fee on UPI transfers exceeding Rs 2,000 to merchants from October 15, while explicitly ring-fencing everyday person-to-person transactions as well as small payments from any charge.

The Economic Times

MDR could push small merchants, price-sensitive consumers back towards cash: GTRI

Effective October 15, UPI payments to merchants (P2M) above Rs 2,000 will attract a 0.4 per cent MDR with an overall cap of Rs 300. Besides, a flat concessional MDR of Rs 5 would be applicable on specific merchant categories such as railways, telecom services, insurance, and fuel for transaction…

The Economic Times

Return of MDR a key step towards making UPI sustainable and enabling further growth: Experts

Effective October 15, UPI payments to merchants (P2M) above Rs 2,000 will attract a 0.4% merchant discount rate with an overall cap of Rs 300. Besides, a flat concessional MDR rate of Rs 5 would be applicable on specific merchant categories such as railways, telecom services, insurance, and fuel for…

The Economic Times

Plea in SC against imposition of MDR on UPI payments of above Rs 2,000

The government has introduced a 0.4% fee on UPI payments of more than Rs 2,000 made to merchants from October 15. Under this, a merchant discount rate (MDR) of 0.4% is to be levied on person-to-merchant transactions of above Rs 2,000. However, no MDR is to be levied on UPI…

The Economic Times

UPI fee rollback ruled out: 0.4% MDR stays on big payments

The government will levy a 0.4% fee on UPI merchant payments exceeding two thousand rupees. This new charge will take effect from October fifteenth, impacting business transactions. Everyday person-to-person payments and small transactions will remain entirely free of any charges. Government sources state this move aims to strengthen the UPI…

The Economic Times

No question of rollback of 0.4% MDR charges on UPI transactions over Rs 2,000: Top govt official

A top official, when asked whether the government was considering to roll back the proposed Merchant Discount Rate charges on UPI transactions above Rs 2,000, to be implemented from October 15, said a decision has been taken and there was no question of reversing it.

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