Finance Ministry rejects foreign influence claims over UPI MDR, says India's digital payments decisions are made independently
Economic Times 2 hrs ago·16 Sept 2026, 1:18 pm
The Finance Ministry has firmly rejected claims that foreign entities exert pressure on India's digital payment policies. This clarification follows reports suggesting external influence over the decision to introduce a small fee for certain UPI transactions. The government maintains that all policy choices are made independently to ensure the stability and affordability of the financial system.
For investors, this news signals a commitment to managing the digital payments ecosystem sustainably. The government has clarified that the new fee structure will not burden consumers and is designed to support the infrastructure required for digital transactions. This move aims to balance the long-term growth of the payments sector with the needs of small merchants.
Moving forward, market participants will watch how this policy is implemented. The focus will be on whether the new charges effectively support the ecosystem without disrupting the widespread adoption of digital payments. Investors should also monitor the government's broader strategy for digital infrastructure and financial inclusion.
Excerpt from Economic Times
India's finance ministry rejected claims of foreign pressure influencing UPI transaction charges. A 0.4% Merchant Discount Rate will apply to UPI payments over Rs 2,000. This charge will not affect consumers and most small merchants remain exempt. The revenue will support payment ecosystem participants and…Read the original at Economic Times
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