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RBI Governor Malhotra Says Small MDR Fee Will Not Impact UPI Growth
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News18•07-10-2026, 13:45
RBI Governor Malhotra Says Small MDR Fee Will Not Impact UPI Growth
- •RBI Governor Sanjay Malhotra stated that levying a small merchant discount rate will not significantly harm UPI transaction volumes.
- •The government recently permitted an MDR fee of 0.4 percent on transactions exceeding Rs 2,000.
- •Malhotra noted that banks credit growth remains robust and will continue to support broader economic activity.
- •The central bank expects system liquidity to normalize from the high surpluses seen recently.
Key Questions Answered
RBI Governor Sanjay Malhotra stated that levying a small merchant discount rate (MDR) fee will not have a major impact on UPI transaction volumes, noting that the central bank does not see any drop in volumes.
The government allowed charging of the merchant discount rate (MDR) under which UPI transactions above Rs 2,000 will attract a fee of 0.4 per cent.
Malhotra stated that banks’ credit growth will continue to be strong and aid broader economic activity. He also noted that while the RBI is conscious of asset quality risks at non-bank lenders amid high liquidity, it does not expect any adverse eventuality to play out.
