The Ministry of Finance has rejected accusations that recent decisions regarding UPI merchant charges are influenced by US entities, asserting that the new rules aim solely to foster domestic competition.
Oct 15, 2026
Implementation Date
The Indian government has firmly denied claims that pressure from US companies or external entities influenced its recent policy regarding UPI merchant charges. With new regulations on high-value merchant discount rates (MDR) coming into effect on October 15, public concern has grown regarding the potential impact on small businesses. Critics have alleged that such policy shifts were pushed by foreign interests, but the Finance Ministry clarified that these measures were developed by the National Payments Corporation of India (NPCI) to ensure the long-term sustainability of the payment ecosystem and promote indigenous competition. Discussions are ongoing between the government and payment platforms to ensure that these fees are not unfairly passed on to everyday consumers.
💭 If you're wondering…
The Merchant Discount Rate is the fee merchants pay to accept digital payments. It covers the costs of banks and payment networks processing the transaction.
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