BharatPe Supports New UPI MDR Regime, Draws Clear Line from Ashneer Grover’s Remarks

New Delhi: Fintech company BharatPe has supported the government’s new Merchant Discount Rate framework for UPI merchant payments, saying it will help create a sustainable digital payments ecosystem without burdening consumers.

The revised framework introduces a 0.4% MDR on eligible merchant transactions above ₹2,000 from October 15. Person-to-person transfers and small-value payments will continue to remain free, protecting users and smaller merchants.

BharatPe Chief Executive Officer Nalin Negi said the mechanism would strengthen the economics of India’s digital payments network while ensuring that consumers do not pay charges for using UPI.

According to Negi, nearly 96% of person-to-merchant transactions will remain unaffected. The framework could generate resources for expanding merchant acceptance, improving payment infrastructure and encouraging digital adoption in smaller towns and underserved markets.

Company Rejects Grover Link

BharatPe also distanced itself from critical comments made by former co-founder and CEO Ashneer Grover, stressing that his statements represented only his personal opinion.

A company spokesperson said Grover has had no association with BharatPe since 2024. He is neither a shareholder nor connected with the fintech firm in any capacity, the spokesperson added, urging media organisations not to attribute his remarks to BharatPe.

Grover Criticises New Fee

Grover had criticised the UPI MDR changes through social media posts and industry discussions. He argued that imposing any merchant discount rate on UPI could hurt India’s mobile payments system and called upon the government to reconsider the decision.

BharatPe, however, maintained that the framework balances affordability with the long-term health of the payments network. It said consumers would continue to enjoy free UPI payments, while micro and small merchants covered under the protected structure would retain zero MDR benefits.

The changes mark a shift after nearly six years of fully free UPI merchant payments and seek to fund the platform’s growth.