RBI Governor Dismisses Concerns Over UPI MDR Impact on Volumes

7 Oct 2026, 3:45 pm · 13h ago · 1 min read · YourStory

Reserve Bank of India Governor Sanjay Malhotra stated that levying a merchant discount rate on UPI transactions will not significantly affect transaction volumes. Following the government’s recent decision allowing a 0.4% MDR on transactions above ₹2,000, Malhotra noted that the central bank has observed no drop in transaction volumes so far. Speaking after a monetary policy meeting, the governor also affirmed that Indian banks' credit growth remains strong. Additionally, he expressed confidence in the country's macroeconomic fundamentals, noting that recent external headwinds and pressure on the current account are temporary issues for India.