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UPI Payment Network

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Last Updated: Just Now

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Healthcare, Pharma & Life Sciences Special Report (Sept 27, 2026)

From UPI to Credit on UPI: How Digital Public Infrastructure is Rewiring India’s ₹200 Lakh Crore Banking Grid

India’s payments stack is no longer just a rail for money movement; it is becoming a distribution layer for credit. The National Payments Corporation of India’s credit-line-on-UPI framework, combined with Account Aggregator consented data and bank-fintech co-lending, is pushing formal credit deeper into the country’s MSME economy without the friction of branch-led underwriting. For lenders, the prize is access to millions of thin-file borrowers. For regulators, the risk is that speed and scale could outpace underwriting discipline. The shift is especially consequential for public sector banks such as SBI and private lenders including HDFC Bank and ICICI Bank, which are partnering with fintechs like Pine Labs and Razorpay to originate and service small-ticket, often unsecured loans. But the model sits inside a tighter prudential regime: RBI’s higher risk weights on unsecured lending, stricter NPA recognition, and pressure to model default behavior in real time. The result is a new contest over who controls credit risk in India’s ₹200 lakh crore banking system.

By RDU Special Investigations Desk7 min read

Banking, Fintech & Insurance6h ago

MDR on select UPI transactions is not a tax or surcharge, will not hit consumers, Sitharaman says

Finance Minister Nirmala Sitharaman has pushed back against criticism of the proposed Merchant Discount Rate on select high-value UPI transactions, saying it is neither a tax, cess nor surcharge and will not flow to the government. She said the charge is part of the digital payments ecosystem, will be borne by merchants, and is intended to support infrastructure and innovation in UPI.

5 min readRead →

Banking, Fintech & Insurance6h ago

Government Says New UPI Merchant Fee Won't Hit Consumers as India Moves to Protect Digital Payments Growth

Government sources on Thursday said the proposed 0.4% merchant discount rate on certain UPI transactions above Rs 2,000 will be borne by merchants, not consumers, and will not flow into government coffers. The move, effective October 15, is aimed at building a sustainable revenue model for the digital payments ecosystem while keeping person-to-person UPI transfers free and shielding most small merchants from the charge.

5 min readRead →

Banking, Fintech & Insurance25 Oct 2026, 02:00 PM IST

IIT Bombay Flags UPI MDR Risk, Warns of Trust Erosion if Fee Plan Is Mishandled

An IIT Bombay report has warned that the proposed merchant discount rate framework for UPI could weaken public confidence if implemented in its current form. The study argues that any move to alter the economics of India’s most widely used digital payments rail must be calibrated carefully to avoid negative sentiment among users and merchants.

5 min readRead →

Banking, Fintech & Insurance21 Oct 2026, 05:00 PM IST

Axis Bank’s Freecharge Wins RBI In-Principle Nod to Operate as Payment Aggregator

Axis Bank’s digital payments arm Freecharge has received in-principle approval from the Reserve Bank of India to operate as a payment aggregator under the PA-O1 and PA-P1 categories, marking a significant regulatory milestone for the platform. The approval positions Freecharge to expand its payments business from FY27, as Axis Bank deepens its push into digital transactions amid strong UPI growth and near-complete digitisation of its financial transaction base.

5 min readRead →

Banking, Fintech & Insurance21 Oct 2026, 02:00 PM IST

GTRI Urges Government to Scrap Proposed UPI Charges, Warns of Damage to Small Businesses

The Global Trade Research Initiative has called on the government to withdraw proposed charges on UPI transactions set to take effect on October 15, arguing that any move to monetise the country’s most widely used digital payment rail could hurt small businesses, raise consumer costs and slow digital adoption. The think tank said keeping UPI free is essential to sustaining transaction volumes, supporting merchants and preserving the broader gains of India’s cash-light economy.

5 min readRead →

Banking, Fintech & Insurance20 Oct 2026, 05:00 PM IST

IIT-Bombay Study Urges Sharp Cut in UPI MDR, Says Banks Should Not Take Bulk Share

A new study by IIT-Bombay professors has called for a steep reduction in the Merchant Discount Rate on UPI transactions, arguing that the current 0.40% charge should be cut to 0.08% for third-party application providers. The report also says banks should not rely on transaction fees as a primary revenue source and should instead support the digital payments ecosystem through CASA-linked funding and better service infrastructure.

5 min readRead →

Banking, Fintech & Insurance16 Oct 2026, 01:14 PM IST

IIT Bombay Flags MDR Risk to UPI Trust, Urges Rationalised Fee Framework

An IIT Bombay report has warned that public trust in UPI could be weakened if the proposed merchant discount rate framework is implemented without recalibration. The study argues that any fee structure must preserve UPI’s low-friction appeal and avoid triggering negative sentiment among users, merchants and the wider digital payments ecosystem.

5 min readRead →

Banking, Fintech & Insurance15 Oct 2026, 08:49 PM IST

Apple Pay Launches in India With Axis Bank Visa and Mastercard Credit Cards

Apple Pay has officially launched in India, enabling Axis Bank credit card holders to make contactless payments using Visa and Mastercard cards on Apple devices. The rollout adds a secure, private payment option that does not require PINs or OTPs for each transaction, marking a notable expansion in India’s digital payments landscape.

5 min readRead →

Banking, Fintech & Insurance15 Oct 2026, 08:08 PM IST

Proposed 0.4% UPI Merchant Fee Will Not Be Passed to Consumers, Government Sources Say

Government sources have clarified that the proposed 0.4% merchant fee on UPI transactions above Rs 2,000 will not be charged to consumers, easing concern over a possible cost increase in India’s most widely used digital payments system. The National Payments Corporation of India said only a small portion of UPI transactions may be affected, while the Indian Banks’ Association is expected to address market misunderstandings soon.

5 min readRead →

Banking, Fintech & Insurance15 Oct 2026, 03:00 PM IST

Sitharaman Rejects UPI MDR Misconception, Says Merchants Bear the Charge

Finance Minister Nirmala Sitharaman has moved to quell confusion over the Merchant Discount Rate on certain UPI transactions, saying the charge will not be passed on to consumers. She stressed that the levy is borne by merchants, is not a tax or surcharge, and applies only to select payments above Rs 2,000 at a rate of 0.4%.

5 min readRead →

Banking, Fintech & Insurance06 Oct 2026, 09:33 AM IST

No GST Should Apply to MDR on UPI Payments, Says C. Rangarajan

Former Reserve Bank of India Governor C. Rangarajan has argued that the government should not levy GST on the merchant discount rate linked to UPI transactions, warning that any tax burden on digital payments could slow adoption. His remarks add fresh policy weight to an ongoing debate over how India should balance revenue considerations with the push for cashless commerce.

5 min readRead →

Banking, Fintech & Insurance04 Oct 2026, 02:39 PM IST

Supreme Court declines interim stay on 0.4% MDR for UPI payments above ₹2,000, issues notice to Centre, RBI and NPCI

The Supreme Court has refused to grant an interim stay on the government’s new merchant discount rate policy that introduces a 0.4% charge on certain UPI transactions above ₹2,000, allowing the measure to remain on track for an October 15 rollout. The court, however, has issued notices to the Centre, the Reserve Bank of India, the National Payments Corporation of India and other respondents after a public interest litigation challenged the legality of the levy.

6 min readRead →

Banking, Fintech & InsuranceJust now (12:47 AM IST)

Mutual Funds, Stocks UPI Payments to Attract 0.02% MDR Under New NPCI Framework

India’s UPI ecosystem is set for a significant pricing shift, with capital market transactions such as mutual fund and stock-related payments to attract a 0.02% merchant discount rate under a new NPCI framework. The move is designed to help fund UPI infrastructure costs while preserving the long-standing promise of free consumer payments for most everyday use cases.

5 min readRead →

Banking, Fintech & InsuranceJust now (05:23 PM IST)

RBI Backs MDR on Large UPI Payments to Strengthen Digital Rail

The Reserve Bank of India has signalled support for a merchant discount rate on large-value UPI transactions, framing the move as a way to improve the long-term sustainability of India’s digital payments ecosystem. Under the proposed structure, person-to-merchant UPI payments above Rs 2,000 would attract MDR, while person-to-person transfers and smaller merchant payments would remain free.

5 min readRead →

Banking, Fintech & InsuranceJust now (02:00 AM IST)

RBI Backs MDR on Large UPI Payments to Strengthen Digital Rail

The Reserve Bank of India has signaled support for a merchant discount rate on large-value UPI transactions, framing the move as a step toward the long-term sustainability of India’s fast-growing digital payments ecosystem. Under the proposed framework, person-to-merchant UPI payments above Rs 2,000 would attract MDR, while person-to-person transfers and smaller merchant payments would remain free.

4 min readRead →

Banking, Fintech & InsuranceJust now (01:40 AM IST)

NPCI to Levy 0.02% MDR on Mutual Fund UPI Payments Under New Framework

The National Payments Corporation of India is set to introduce a 0.02% merchant discount rate on UPI payments used for mutual funds and other capital market transactions, marking a notable shift in how India’s fastest-growing retail payment rail is funded. The move, capped at Rs 300 for investment platforms, comes alongside new charges for select merchant categories as NPCI seeks to support infrastructure costs while preserving free consumer UPI payments.

5 min readRead →

Banking, Fintech & InsuranceJust now (01:19 AM IST)

NPCI to levy 0.02% MDR on mutual fund UPI payments under new framework

The National Payments Corporation of India is set to introduce a 0.02% merchant discount rate on UPI payments used for mutual funds and other capital market transactions, marking a notable shift in the economics of India’s fastest-growing retail payment rail. The charge, capped at Rs 300, comes alongside a broader fee structure for select merchant categories, while keeping person-to-person consumer payments free.

5 min readRead →

Banking, Fintech & Insurance13 Oct 2026, 07:11 PM IST

Rajiv Kumar Warns UPI Fees Could Push Users Back to Cash

Former NITI Aayog vice-chairman Rajiv Kumar has urged the government to keep UPI merchant payments free for several more years, warning that even a modest fee could slow digital adoption and revive cash usage. His remarks come after the government said a 0.4% merchant discount rate will apply to UPI payments above Rs 2,000 from October 15, while consumer transactions remain free.

5 min readRead →

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Consumer hardware, AI foundation models, aerospace systems, drugs and transit grids. All news mentioning this entity is automatically verified and aggregated into this live intelligence dossier.

Co-Occurring Entities

Entities frequently referenced alongside UPI Payment Network:

NPCI(2)State Bank of India(1)Reserve Bank of India(1)Nirmala Sitharaman(1)