BharatPe Supports New UPI MDR Charges, Distances Itself From Ashneer Grover's Criticism

BharatPe has expressed its support for the recently introduced Merchant Discount Rate (MDR) framework for UPI transactions, while distancing itself from co-founder Ashneer Grover's criticism of the move. The new framework, introduced by the National Payments Corporation of India, aims to strengthen and sustain the payments ecosystem while keeping UPI free for consumers.

BharatPe CEO Nalin Negi reiterated that consumers will continue to pay no charges for UPI transactions, and micro and small merchants under the P2PM framework will remain unaffected by the new MDR charges. According to data from NPCI, 96 percent of person-to-merchant (P2M) transactions will remain unaltered by the new framework, which, Negi stated, generates resources to expand merchant acceptance, infrastructure, and digital payment adoption, especially in smaller towns and underserved markets.

Grover's criticism, which argued that the levy would ultimately be passed on to consumers, was dismissed by BharatPe, emphasizing that Grover, who resigned from the company in 2024, has no association with the firm currently.