MDR a small fee, will not have major impact on UPI volumes: RBI Governor Malhotra

Reserve Bank of India Governor Sanjay Malhotra addresses a press conference on its Monetary Policy announcement and repo rate hike from 5.25% to 5.50%, in Mumbai on October 7, 2026. | Photo Credit: ANI

Reserve Bank of India Governor Sanjay Malhotra on Wednesday (October 7, 2026) said levying a "small fee" in the form of merchant discount rate (MDR) will not have a "major impact" on UPI transaction volumes.

"As of now, we do not see any drop in volumes. And I don't personally think that a small fee will have a major impact on the volumes," he told reporters at the central bank headquarters in Mumbai.

It can be noted that last month, the government allowed charging of the MDR under which transactions above ₹2,000 will attract a fee of 0.4%.

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