MDR, short for Merchant Discount Rate, is the processing fee merchants pay banks for digital payments. UPI currently carries no such merchant charge. GetePay says banks and payment firms must still fund merchant onboarding, technology upgrades and regulatory compliance, without MDR income from these transactions.

The scale makes that funding question important. In financial year 2026, UPI handled 24,162 crore transactions totalling ₹314 lakh crore. Transaction numbers increased 30%, while their value rose 21% over the previous year. With more than 55 crore users, UPI represents nearly 85% of India’s digital payment volume, putting pressure on technology and security systems.

GetePay founder Praveen Sharma favours a modest charge to help finance cybersecurity and fraud prevention. A rate of five basis points, or 0.05%, would mean ₹5 on a payment of ₹10,000. Applied to eligible transactions totalling ₹1 lakh crore, that rate would bring in ₹50 crore.

The concern is also about the changing payment mix: customers moving away from cards reduce a source of fee income, squeezing bank payment businesses. Any change would depend on government and RBI policy. The report does not state that a new charge has been approved; it suggests any future receipts would likely be shared among banks, payment aggregators and NPCI.