Ashneer Grover Questions New UPI Charges: Who Will Ultimately Pay?
New 0.4% MDR applies to specified merchant payments above ₹2,000 from October 15 ; government says consumers cannot be charged, while Grover argues the cost could eventually reach them indirectly New Delhi, September 16, 2026: The introduction of a new Merchant Discount Rate (MDR) on certain higher-value UPI merchant payments has triggered a debate over who ultimately bears the cost. Among those questioning the move is entrepreneur and BharatPe co-founder Ashneer Grover , who has argued that even if the charge is formally imposed on merchants, businesses may eventually recover the cost through prices or other changes affecting consumers. Under the new framework, effective October 15, 2026 , a 0.4% MDR will apply to specified person-to-merchant (P2M) UPI payments above ₹2,000, with the charge capped at ₹300 for transactions of ₹75,000 and above . Person-to-person UPI payments will remain free regardless of amount. Small merchants receiving up to ₹1 lakh a month through eligible UP...