BusinessPhoto: The HinduNPCI Defends MDR Charge to Sustain UPI Ecosystem
The National Payments Corporation of India (NPCI) told the Supreme Court that zero Merchant Discount Rate (MDR) for all UPI transactions is unsustainable due to rising functional costs in India's digital payments sector. In August 2026, UPI processed 24.51 billion transactions worth ₹29.82 lakh crore, its highest monthly volume. For FY 2025-26, UPI handled 241.62 billion transactions worth ₹314 lakh crore. MDR rollout was postponed to after Diwali following traders' concerns.
The Hindu··New Delhi


