BharatPe has publicly backed the government's upcoming 0.4% Merchant Discount Rate on UPI transactions exceeding Rs 2,000, set for October 15, 2026. The company stated this move is vital for payment ecosystem sustainability. Additionally, the fintech firm clarified that former co-founder Ashneer Grover, who criticized the policy, has no operational or equity role, and his views do not represent the company.
BharatPe has officially supported the government's recent decision to introduce a 0.4 percent Merchant Discount Rate on Unified Payments Interface transactions exceeding Rs 2,000. This policy change, scheduled to take effect on October 15, 2026, marks a pivotal shift for the Indian digital payment landscape, moving away from a decade of zero-fee transactions for larger commercial payments.
Chief Executive Officer Nalin Negi stated that the framework is designed to improve the sustainability of the digital payments infrastructure. The company highlighted that approximately 96 percent of person-to-merchant transactions fall below this amount and will remain entirely free of charge. This structure is intended to allow for wider merchant acceptance and infrastructure growth in Tier-2 and Tier-3 cities without placing a new financial burden on micro-enterprises or average consumers.
Alongside the policy support, the firm addressed public comments made by former co-founder Ashneer Grover. Grover had openly criticized the MDR changes, describing the move as regressive and potentially damaging to the efficiency of the digital payment ecosystem. In a clear move to manage its public image and corporate stance, BharatPe stated that Grover has no formal association with the organization as of 2026, holding neither equity nor an operational role. The company asserted that his views on industry policy are personal and do not align with the firm's strategic position.
This development is significant for the broader fintech sector. For years, the 'zero-MDR' model on UPI has been a subject of debate, with payment firms and banks frequently citing the difficulty of sustaining infrastructure costs without transaction fees. By aligning with the government's new fee structure, BharatPe is signaling a shift in the business model of the payments industry. Industry observers will now monitor how the October 15 implementation influences merchant behavior and whether other major payment players adopt a similar public stance regarding the new regulatory framework.