Govt To Ask IBA To Ensure 0.4% MDR On UPI Is Not Passed On To Consumers: Sources
NDTV Profit 1 hr ago·24 Sept 2026, 2:44 pm
The government is reportedly preparing to instruct the Indian Banks' Association (IBA) to ensure that the 0.4% merchant discount rate (MDR) charged on UPI transactions is not passed on to consumers. This move aims to maintain the cost-effectiveness of the Unified Payments Interface, which is currently free for users, and prevent merchants from increasing prices to cover these fees.
For investors, this development is significant as it signals the government's continued focus on supporting the digital payments ecosystem. By ensuring UPI remains affordable, the government aims to boost financial inclusion and sustain the growth of digital transactions in the country.
What to watch next is the official response from the IBA and the specific mechanism they plan to adopt to implement this directive. Investors should also monitor how this policy impacts the operational costs of banks and payment service providers.
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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