RBI flags need for sustainable UPI funding, keeping MDR debate in focus
RBI Governor Sanjay Malhotra said UPI needs sustainable funding as volumes rise, without commenting on MDR changes. Industry expects a potential 30–40 bps MDR on large merchant P2M transactions, while UPI has operated with zero MDR since January 2020.
What happened
RBI Governor Sanjay Malhotra said India’s UPI ecosystem needs sustainable funding as transaction volumes grow, while declining to comment on potential MDR
Key facts
- 30-40 basis points
- annual turnover exceeding ₹1 crore
- zero MDR since January 2020
Why this matters
Retail payment teams should reassess acquiring, wallet and bank-partner contracts for MDR pass-through and volume-based pricing protections as UPI’s funding model comes under review.