RBI backs UPI MDR for wider acceptance

The Reserve Bank of India (RBI) has backed the introduction of Merchant Discount Rate (MDR) on large-value UPI transactions, saying the move will help strengthen the long-term sustainability of India's digital payments ecosystem. In a post on X, the central bank said the measure would enable UPI to continue scaling, innovating and serving consumers and businesses across the country.The RBI said a fair distribution of MDR among ecosystem participants would support continued investment in technology, infrastructure and payment acceptance networks. Such investments, it added, could help expand UPI acceptance, deepen the customer base and sustain growth in transaction volumes.<blockquote class="twitter-tweet"><p lang="en" dir="ltr">The introduction of MDR on large-value UPI transactions (i.e., above ₹2,000) is an important step towards strengthening the long-term sustainability of India’s digital payments ecosystem. It will help UPI in continuing to scale, innovate and serve consumers and businesses across…</p>— ReserveBankOfIndia (@RBI) <a href="https://ift.tt/oI1yLdc 15, 2026</a></blockquote> <script async="" src="https://ift.tt/W9qerly" charset="utf-8"></script>The comments come amid the government’s clarification on the revised MDR framework for UPI payments. Under the new provisions, MDR will apply to specified person-to-merchant (P2M) transactions above ₹2,000, while person-to-person (P2P) transactions will remain free, regardless of the amount transferred. Merchant payments up to ₹2,000 will also continue to remain free. The revised framework is scheduled to take effect from October 15, 2026.Also read: UPI Charges Explained: Will you pay a fee for Rs 2,000+ UPI payments? Government clarifies what users need to knowReiterating its commitment to the digital payments ecosystem, the RBI said UPI would continue to be “safe, seamless, affordable, and accessible”. It added that the fair and appropriate distribution of MDR among ecosystem participants would help support the long-term growth and sustainability of India’s digital payments network.

from Economic Times https://ift.tt/2ArcuMF