{
  "id": 12593162,
  "title": "MDR a small fee, will not have major impact on UPI volumes: RBI Governor Sanjay Malhotra",
  "url": "https://urgent.news/2026/10/07/mdr-a-small-fee-will-not-have-major-impact-on-upi-volumes-rbi",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T09:25:35.000Z",
  "source": {
    "name": "Hindustan Times",
    "slug": "hindustan-times",
    "url": "https://www.hindustantimes.com/india-news/mdr-a-small-fee-will-not-have-major-impact-on-upi-volumes-rbi-governor-sanjay-malhotra-101791364830369.html"
  },
  "original_language": "en",
  "account": "Reserve Bank of India Governor Sanjay Malhotra stated on Wednesday that imposing a modest fee, known as merchant discount rate (MDR), will not significantly affect the volume of UPI transactions. He assured reporters at the central bank headquarters that there is no anticipated decline in transaction volumes and personally does not believe that a minor fee will have a major impact. Last month, the government permitted charging MDR, with transactions exceeding ₹2,000 incurring a 0.4 percent fee. Malhotra spoke about the announcement of the rate hike and clarified that a cut in rates is not on the table. He highlighted that banks' credit growth will remain robust, supporting overall economic activity. The RBI is mindful of the potential adverse impact on asset quality at non-bank lenders amid a large influx of liquidity, but it does not anticipate this outcome. The system liquidity will differ from the high surplus observed recently and will remain stable, Malhotra added. He praised the FCNR(B) scheme to raise USD 133 billion in deposits from overseas investors under a low-interest rate facility, showcasing the country's strong macroeconomic fundamentals. Malhotra expressed confidence in banks responsibly utilizing the funds. He also acknowledged external challenges causing a decline in flows, emphasizing that the current account pressure is temporary and that the Balance of Payments will soon return to a surplus status. The central bank governor declined to comment on the RBI's decision not to grant Tata Sons' request to surrender its non-banking financial company (NBFC) license and force the conglomerate to list to comply with NBFC norms.",
  "summary": "It can be noted that last month, the government allowed charging of the MDR under which transactions above ₹2,000 will attract a fee of 0.4 per cent.",
  "key_points": [
    "RBI Governor Sanjay Malhotra states MDR fee will not significantly impact UPI transaction volumes.",
    "Government permits MDR, charging 0.4% on transactions over ₹2,000.",
    "Malhotra assures banks credit growth will remain robust, supporting economic activity."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "The Indian Express",
        "title": "Small fee won’t have major impact on UPI transcation volumes, says RBI Governor",
        "url": "https://urgent.news/2026/10/07/small-fee-wont-have-major-impact-on-upi-transcation-volumes-says-rbi",
        "published": "2026-10-07T07:19:11.000Z"
      },
      {
        "outlet": "The Hindu",
        "title": "MDR a small fee, will not have major impact on UPI volumes: RBI Governor Malhotra",
        "url": "https://urgent.news/2026/10/07/mdr-a-small-fee-will-not-have-major-impact-on-upi-volumes-rbi-12622932",
        "published": "2026-10-07T11:58:45.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}