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BharatPe Backs New UPI MDR Framework, Rejects Grover’s Criticism
BharatPe supports a new rule for some UPI payments.
Under the rule, certain merchant payments above ₹2,000 will have a small 0.4% fee.
People sending money to one another will still not pay this fee.
Small-value payments will also remain free.
BharatPe says this could help pay for better payment systems and more digital payment acceptance.
The company says about 96% of payments from people to merchants will not change.
Former BharatPe executive Ashneer Grover criticized the new fee.
BharatPe said Grover’s views are his own and do not represent the company.
BharatPe supported a 0.4% MDR on eligible merchant UPI transactions above ₹2,000 from October 15.
Person-to-person transfers and small-value payments will remain free under the revised framework.
BharatPe said nearly 96% of person-to-merchant transactions would remain unaffected.
The company said MDR revenue could support payment infrastructure and digital adoption in underserved markets.
BharatPe said former executive Ashneer Grover’s criticism was personal and did not represent the company.
- Who
- BharatPe, Chief Executive Officer Nalin Negi, and former co-founder and CEO Ashneer Grover.
- What
- BharatPe supported a revised UPI Merchant Discount Rate framework and rejected any association with Grover’s criticism.
- Where
- India’s digital payments network.
- When
- The 0.4% MDR is scheduled to apply from October 15; the article does not specify the year.
- Why
- BharatPe said the framework could improve the long-term sustainability of digital payments while keeping UPI free for consumers and protected smaller merchants.
BharatPe’s Position
Ashneer Grover’s Position
Effect of the MDR
BharatPe’s Position
BharatPe said the revised framework balances affordability with the long-term health of the payments network and will not charge consumers for UPI.
Ashneer Grover’s Position
Grover argued that imposing any MDR on UPI could hurt India’s mobile payments system and urged the government to reconsider.
Use of payment fees
BharatPe’s Position
BharatPe said the mechanism could generate resources for expanding merchant acceptance, improving infrastructure, and encouraging digital adoption in smaller towns and underserved markets.
Ashneer Grover’s Position
Grover’s reported criticism focused on the broader risk that a UPI merchant fee could damage the mobile payments system.
Representation of views
BharatPe’s Position
BharatPe said Grover’s statements were personal opinions and should not be attributed to the company.
Ashneer Grover’s Position
Grover criticized the changes through social media posts and industry discussions as a former BharatPe co-founder and CEO.
Key facts
- MDR rate
- 0.4% on eligible merchant transactions above ₹2,000.
- Effective date
- October 15.
- Payments remaining free
- Person-to-person transfers and small-value payments.
- Transactions unaffected
- BharatPe said nearly 96% of person-to-merchant transactions will remain unaffected.
- Company position
- BharatPe said the framework supports a sustainable digital payments ecosystem without charging consumers for UPI.
- Grover’s status
- BharatPe said Ashneer Grover has had no association with the company since 2024 and is neither a shareholder nor connected to it.
Sources
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