Only around 10% of the overall value of UPI transactions could face the risk of merchant charges being passed on to consumers under the proposed MDR framework, according to NPCI chief Dilip Asbe.
Speaking at the SBI Banking & Economics Conclave 2026, Asbe said around 80% of the MDR collected would come from businesses with annual turnover exceeding ₹1,000 crore.
He said such businesses already accept credit cards and pay higher charges, and generally have not offered discounts for UPI transactions.
Around 96% of UPI transaction volume and 75% of overall transaction value are currently not expected to attract charges.
India has around 60 million active merchants in the UPI ecosystem. Asbe said around 75% of QR-code merchants had not received even one transaction exceeding ₹2,000.
He also said 5% of MDR collections are proposed to be channelled into a fund for young entrepreneurs and areas requiring support. NPCI is working with the RBI and other stakeholders on the fund, which could reach around ₹3,000 crore over three years.
The proposed fund is intended to accelerate UPI acceptance among small merchants and support payment infrastructure.
