BharatPe backs new UPI MDR framework; distances itself from Ashneer Grover's remarks
Clarifying that Grover's remarks do not reflect the company's stance, BharatPe said his views were made strictly in an individual capacity.
New Delhi: Fintech firm BharatPe has voiced its support for the government's new UPI Merchant Discount Rate (MDR) regime, claiming it will foster a sustainable digital payments ecosystem without imposing additional costs on consumers. The government has introduced a 0.4% MDR on eligible merchant transactions exceeding ₹2,000 from October 15.
However, person-to-person transfers and small-value payments will continue to be free, safeguarding users and smaller merchants. BharatPe's Chief Executive Officer Nalin Negi stated that the mechanism would bolster India's digital payments network's economics while ensuring consumers are not charged for using UPI. According to Negi, nearly 96% of person-to-merchant transactions will remain unaffected.
The new framework could generate resources for enhancing merchant acceptance, upgrading payment infrastructure, and promoting digital adoption in smaller towns and underserved regions. BharatPe clarified that former co-founder and CEO Ashneer Grover's criticism of the UPI MDR changes was his personal opinion, as he had no formal connection with the company since 2024.
Grover had argued that imposing any merchant discount rate on UPI could undermine India's mobile payments system and urged the government to reconsider the decision.
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