Archive · 19 Sep 2026
BJD MP Santrupt Misra Challenges New UPI MDR Fee
The government plans to charge a small fee on some UPI payments to merchants.
The fee would be 0.4 percent for payments above Rs 2,000.
It is scheduled to begin on October 15.
BJD MP Santrupt Misra says the digital-payment system needs funding.
He believes the government could use part of the Reserve Bank of India’s dividend.
He also says banks connected to NPCI could help pay for the system.
Misra warns that shops may earn less money or charge customers more.
The government says the fee will not affect consumers.
Misra disagrees with that claim.
BJD MP Santrupt Misra criticised the Centre’s 0.4% MDR on merchant UPI payments above Rs 2,000.
The fee is scheduled to apply from October 15 to person-to-merchant UPI transactions.
Misra suggested using part of the RBI’s Rs 2.86 lakh crore dividend to fund digital-payment infrastructure.
He said NPCI shareholder banks, which earned Rs 2.5 lakh crore in profit, could also contribute.
Misra argued merchants may lose profit or pass the fee to consumers despite the government’s claims.
- Who
- BJD Rajya Sabha MP Santrupt Misra and the Centre are involved in the dispute.
- What
- The Centre plans to impose a 0.4% Merchant Discount Rate on person-to-merchant UPI transactions above Rs 2,000.
- When
- The fee is scheduled to take effect on October 15; Misra raised his concerns on Saturday.
- Where
- Misra made the remarks at a press conference at the Constitution Club in New Delhi.
- Why
- The Centre says the fee will support the digital-payment system, while Misra argues alternative funding sources could be used and warns of effects on merchants and consumers.
Misra’s Criticism
Government’s Position
Who should bear the cost
Misra’s Criticism
Santrupt Misra says the government could use part of the Reserve Bank of India’s dividend or seek contributions from NPCI shareholder banks to fund the digital-payment infrastructure.
Government’s Position
The Centre is introducing the 0.4% MDR for eligible merchant UPI transactions; the government says the charge will not affect consumers.
Impact on consumers
Misra’s Criticism
Misra argues the fee could reduce merchants’ profits or be passed on to consumers, saying the government’s position reflects a misunderstanding of economics.
Government’s Position
The government maintains that the MDR will not impact consumers.
- MDR rate
- 0.4% on eligible merchant UPI transactions
- Transaction threshold
- Payments above Rs 2,000
- Implementation date
- October 15
- Suggested government funding
- A portion of the Reserve Bank of India’s Rs 2.86 lakh crore dividend
- NPCI shareholder-bank profits
- Rs 2.5 lakh crore last year
- Potential effect cited by Misra
- Merchants may reduce profit margins or pass the fee to consumers
- Speaker
- BJD Rajya Sabha MP Santrupt Misra