Four in five Mumbaikars unwilling to bear MDR fee on UPI payments above ₹2,000: study
A LocalCircles survey finds most Mumbai residents will switch to cards or cash instead of paying the 0.4% MDR on UPI payments once it takes effect on October 15
A recent study by LocalCircles reveals that four out of five Mumbai residents are unwilling to pay the MDR fee on UPI payments exceeding ₹2,000 if merchants pass the cost onto consumers. The survey, conducted on October 1, 2026, found that 29% of respondents would switch to a credit card, 20% would opt for cash, and 17% would use a debit card in such situations.
With the MDR of 0.4% set to commence on October 15, the biggest risk lies in the merchant passing on the fee. National UPI user surveys reveal that only 14% of Indian consumers would continue using UPI if merchants added the fee. In a national survey of over 67,000 UPI users across 291 districts, only 17% of merchants were willing to bear the 0.4% MDR on payments above ₹2,000.
The Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) supports the protest, with over 150 affiliated trader associations backing the initiative. Mumbai's consumers are more inclined towards using cards compared to the rest of India, with 75% of survey respondents expecting to use cards, cash, or bank transfers for purchases above ₹2,000 if the fee is passed on.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
