The Indian Finance Ministry denied that US pressure influenced new UPI Merchant Discount Rate policies, asserting they are designed to support domestic competition and RuPay.
Reader brief
Through the Reader lens: The Indian Finance Ministry has refuted claims that its new 0.4% Merchant Discount Rate (MDR) on select UPI transactions was driven by US pressure. The policy, set to begin on October 15, 2026, applies to person-to-merchant payments over ₹2,000, with exemptions for small merchants to minimize the impact on them. The Ministry stated that these measures are intended to create a sustainable revenue model for digital payments and help smaller domestic companies compete effectively. Additionally, the policy continues to restrict credit card integration on UPI to RuPay to promote its adoption.
What was said2
Attributed, verbatim. Every quote is checked against the article it came from. One that does not match is not shown.
Department of Financial Services
1 quote“The allegation that MDR has been introduced under any external influence is patently false and misleading”
In the article
…any other credit card other than the RuPay credit card,” the DFS said. It added that there is a clear policy of allowing only RuPay credit cards on UPI to promote RuPay as the preferred credit card among Indian users. “ The allegation that MDR has been introduced under any external influence is patently false and misleading ,” the department said. The clarification comes amid allegations from some Opposition parties, including the Congress, that the government had introduced the 0.4% MDR following pressure from the US. The Finance Ministry…
National Payments Corporation of India
1 quote“Introduction of MDR on select high-value transactions will provide a self-sustaining revenue model to smaller companies to compete for a higher share in the UPI ecosystem”
In the article
…application providers (TPAPs) in November 2020. However, implementation of the cap was difficult because smaller companies were unable to compete with market leaders in the absence of a self-sustaining revenue model. “ Introduction of MDR on select high-value transactions will provide a self-sustaining revenue model to smaller companies to compete for a higher share in the UPI ecosystem ,” NPCI said. The organisation said the move is intended to allow more domestic companies to expand their operations and described it as a measure aimed at protecting India's sovereignty in the electronic payments…
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