Reader letters urge calibrated UPI merchant fees for larger transactions

Letters published by BusinessLine argue that exempting small-value UPI payments while applying a calibrated merchant discount rate to larger transactions could improve payment-network sustainability.

— Filed Thu, 6 Aug, 2026, 20:38 IST · Source The Hindu BusinessLine · Updated

Reader letters argue for a calibrated merchant discount rate on larger UPI transactions to make payments commercially sustainable, while retaining fee exemptions for small-value payments. They also flag inflation risks from crude oil, climate volatility, credit demand and imported inflation.

Why this matters

BusinessLine letters add stakeholder support to recent signals that Lok Sabha cleared a framework for possible UPI merchant fees and that India is weighing MDR on larger UPI and RuPay payments above ₹2,000.

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