RBI Governor: Too Early to Say Who Pays UPI Fees

RBI Governor Sanjay Malhotra said on August 5 it is premature to determine who would bear the cost if the government permits a Merchant Discount Rate (MDR) on some UPI transactions. His remarks followed the introduction of the Taxation and Other Laws (Amendment) Bill, 2026, which would allow the Centre to decide which electronic payment modes remain free. Reports suggest MDR below 0.5% on merchant payments above Rs 2,000 is being considered, but no charges have been announced.