RBI flags need for sustainable UPI funding, keeping MDR debate in focus
RBI Governor Sanjay Malhotra said UPI needs sustainable funding as volumes rise, without commenting on MDR changes. Industry expects a potential 30–40 bps MDR on large merchant P2M transactions, while UPI has operated with zero MDR since January 2020.
RBI Governor Sanjay Malhotra said India’s UPI ecosystem needs sustainable funding as transaction volumes grow, while declining to comment on potential MDR changes. Industry expects possible 30-40 bps MDR on large merchant P2M payments.
Why this matters
The funding comment extends recent signals that India is weighing MDR on high-value UPI payments and that a proposed law has revived merchant-fee questions, while UPI remains free for now.
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