A proposed 0.4% merchant discount rate on UPI transactions could generate as much as Rs 15,000 crore in the first year, according to the NPCI chief, reviving debate over how India should fund its fast-growing digital payments infrastructure. The proposal comes as policymakers weigh the long-term economics of a system that has scaled rapidly on the back of zero-cost consumer payments.
🇮🇳 India Edition • Banking, Fintech & InsuranceRDU GLOBAL CORRESPONDENT
VERIFIED WIRE INTELLIGENCE
"NPCI Chief Says 0.4% UPI MDR Could Recover Rs 15,000 Crore in Year One"
A proposed 0.4% merchant discount rate on UPI transactions could generate as much as Rs 15,000 crore in the first year, according to the NPCI chief, reviving debate over how India should fund its fast-growing digital payments infrastructure. The proposal comes as policymakers weigh the long-term economics of a system that has scaled rapidly on the back of zero-cost consumer payments.
NPCI Chief Says 0.4% UPI MDR Could Recover Rs 15,000 Crore in Year One
R
RDU Global Wire
BFSI & Fintech Desk
New Delhi, India Just now (12:38 AM IST)•5 min read
A proposed 0.4% merchant discount rate on UPI transactions could generate as much as Rs 15,000 crore in the first year, according to the NPCI chief, reviving debate over how India should fund its fast-growing digital payments infrastructure. The proposal comes as policymakers weigh the long-term economics of a system that has scaled rapidly on the back of zero-cost consumer payments.
Editorial & Verification Notice
Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.
Related Coverage
Banking, Fintech & Insurance
15 Nov 2026, 02:00 PM ISTRBI Extends Supersession of Abhyudaya Co-operative Bank Board by One Year
The Reserve Bank of India has extended the supersession of the Board of Directors of Abhyudaya Co-operative Bank until November 24, 2025, prolonging central bank oversight of the lender. Satya Prakash Pathak will continue as Administrator as the RBI seeks to strengthen governance and address material concerns over the bank’s operations.
Banking, Fintech & Insurance
15 Nov 2026, 02:00 PM ISTHybrid Capital Gains Ground as India Inc Faces a Narrower Funding Menu
Hybrid capital is drawing wider acceptance in India as borrowers confront a shrinking set of financing options beyond traditional bank lending, according to Bain Capital Special Situations partner Sarit Chopra. The Boston-based private equity firm says demand is rising across cross-border acquisitions, carve-outs and promoter deleveraging, with its special situations arm deploying $1.2 billion in calendar 2026 and targeting sustained annual deployment of about $1 billion.
Banking, Fintech & Insurance
15 Nov 2026, 02:00 PM ISTHDFC Bank Wins Approval to Offer CGAS Deposits, Expanding Tax-Saving Parking Options
HDFC Bank has received government authorisation to accept deposits under the Capital Gains Accounts Scheme (CGAS), 1988, giving taxpayers a new bank channel to temporarily park eligible capital gains while preserving tax exemption benefits. The facility will allow customers to place unused proceeds in savings accounts or fixed deposits for up to three years and earn interest during the holding period.