What is the new Merchant Discount Rate (MDR) framework for UPI payments?

The new MDR framework mandates a nominal fee of 0.4% on person-to-merchant (P2M) UPI transactions above ₹ 2,000, while transactions below this threshold and person-to-person payments remain free.

Why did Ashneer Grover criticize the UPI MDR charges?

Ashneer Grover criticized the UPI MDR charges, claiming they would ultimately be passed on to consumers, arguing that such fees should be labeled as a tax instead of being referred to as charges.

How does the MDR framework aim to support the payments ecosystem?

The MDR framework is designed to create resources that expand merchant acceptance, improve infrastructure, and promote digital payment usage, particularly in smaller towns and underserved markets.

Bharatpe backs UPI MDR charges, says Ashneer Grover's criticism not company's view: ‘No ties with him since 2024’

Bharatpe clarified that former CEO Ashneer Grover's views on the MDR charges do not represent the position of the firm and are in his personal capacity.

Published on: Sep 17, 2026, 17:47:06 IST

By HT News Desk

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Bharatpe, one of India's biggest fintech firms, has backed the new Merchant Discount Rate (MDR) framework introduced by National Payments Corporation of India and said that the move will build a “stronger” and “sustainable” payments ecosystem.

Entrepreneur Ashneer Grover criticised the recently announced merchant charge on UPI transactions above ₹2,000 and claimed that it will impact consumers eventually.

This comes as the company's co-founder and former CEO Ashneer Grover strongly criticised the move and claimed that the cost will be passed on to the customer eventually.

Nalin Negi, CEO BharatPe said, “The new MDR framework proves that UPI will remain free for consumers while building a sustainable, robust and stronger payments ecosystem. Consumers continue to pay no charges for UPI, while micro and small merchants under the P2PM framework remain protected with Zero MDR," reported news agency ANI.

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Also read: 'End of day consumer pays': Ashneer Grover questions UPI merchant fee, says 'call it tax'

Citing the data shared by NPCI, Negi said that around 96% of person-to-merchant (P2M) transactions will “remain unaffected” as the framework “creates resources to expand merchant acceptance, infrastructure and digital payment adoption, particularly across smaller towns and underserved markets”.

He said that BharatPe has always been a "champion of the small merchant, and we strongly support this approach that protects them while strengthening the ecosystem they depend on.”

The firm also clarified that Grover's views on the MDR charges do not represent the position of the firm and are in his personal capacity.

“Mr. Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity," said a BharatPe spokesperson.

Also read: 'We fail to appreciate what we get for free': Omar Abdullah backs UPI MDR charges

“We urge members of the media not to attribute any statement or view expressed by Mr. Grover to the company. Our position on MDR framework and the digital payments ecosystem is represented by its current leadership and authorised spokespersons,” the spokesperson added.

Also read: ‘Customers will end up paying’: Bengaluru CEO weighs in on UPI MDR debate

What Ashneer Grover said?

Entrepreneur Ashneer Grover criticised the recently announced merchant charge on UPI transactions above ₹2,000 and claimed that it will impact consumers eventually.

In a TV interview, Grover argued that any levy imposed with respect to UPI payments should clearly be called a “tax”.

When asked in an interview with Times Now about the argument that only those who can “afford” the fee are being asked to pay it, Grover shredded the logic and said, “Then call it tax. Why are you calling it a ‘charge’, ‘MDR’, or claiming that it won't affect the customer?".

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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