Neutral impactEconomy
RBI DG Murmu says UPI MDR unlikely to push up cash usage; initial apprehension may not come true
Economic Times 1 hr ago·18 Sept 2026, 10:21 am
The Reserve Bank of India (RBI) has clarified that the recent introduction of a merchant discount rate (MDR) on large-value UPI transactions will not necessarily lead to a surge in cash usage. Deputy Governor Shirish Chandra Murmu stated that initial concerns regarding a shift back to physical currency may be unfounded as the digital payments ecosystem adapts to the new framework.
This development is significant for the broader market as it suggests a continued and stable shift towards digital transactions. For investors, it implies that the push for a less-cash economy is likely to persist, which could benefit the long-term growth prospects of digital payment companies and fintech firms operating in India.
Excerpt from Economic Times
Published On Sep 18, 2026 at 03:51 PM IST The introduction of merchant discount rate (MDR) on UPI transactions is unlikely to result in a significant shift back towards cash, Reserve Bank of India Deputy Governor Shirish Chandra Murmu said. Responding to a question on whether the new MDR regime could lead to greater…Read the original at Economic Times
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
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