REGULATION · IN
India imposes 0.4% merchant discount rate on UPI payments, effective Oct. 15
The Reserve Bank of India is introducing a 0.4% MDR (merchant discount rate) on specified Unified Payments Interface transactions starting Oct. 15. This reverses India's zero-fee instant-payments model and shifts economics to payment processors and merchants.
WHY IT MATTERS
Forces BFSI and fintech operators to rethink UPI unit economics. Payment platforms must absorb or pass through the 0.4% cost, affecting pricing strategies across lending, payments, and wallets.
Source: PYMNTS · 2026-10-02