Archive · 8 Oct 2026
Central Bank Chief Says UPI MDR Won’t Charge Customers
UPI lets people pay quickly by scanning a code.
Central Bank of India chief Kalyan Kumar says the discussed MDR is not a fee customers pay just for using UPI.
Person-to-person payments are outside the MDR rules.
Merchant payments up to ₹2,000 and other exempt transactions are also excluded.
The article estimates that about 96% of transactions will not have MDR.
When it applies, MDR relates to certain merchant transactions.
The bank says systems will help identify which transactions qualify.
It also says banks invest in security and customer support.
The bank’s branches and other service points help provide banking access across India.
Central Bank of India CEO Kalyan Kumar says MDR is not a general fee for customers using UPI.
The article says person-to-person payments, merchant transactions up to ₹2,000, and other exempt categories remain outside MDR.
An estimated 96% of transactions are expected not to attract MDR under the framework.
MDR, where applicable, relates to specified merchant transactions and depends on merchant category, transaction value, and exemptions.
Central Bank of India says it is preparing transaction-identification technology and cites 22,231 customer touchpoints nationwide.
- Who
- Kalyan Kumar, managing director and CEO of Central Bank of India, explains the MDR framework and its implications for customers and merchants.
- What
- The article clarifies that MDR is not a general customer charge for using UPI and describes which transactions are excluded.
- When
- The article discusses the recent debate around MDR; it gives no publication date or implementation date.
- Where
- India.
- Why
- To clarify how MDR applies and reassure customers that ordinary UPI use is not being charged under the framework.
- Estimated transactions not attracting MDR
- About 96%
- P2P transactions
- Remain outside the MDR framework
- P2M threshold
- Merchant transactions up to ₹2,000 remain outside MDR
- MDR applicability
- Depends on merchant category, transaction value, and available exemptions
- Central Bank of India customer touchpoints
- 22,231
- Touchpoint breakdown
- 4,622 branches plus 1 International Banking Unit, 3,820 ATMs, 13,768 Business Correspondent outlets, and 20 BC Maxx centres
- Rural and semi-urban branches
- About 66%