BharatPe Supports New UPI MDR Charges, Distances Itself From Ashneer Grover's Criticism

BharatPe has thrown its support behind the newly introduced Merchant Discount Rate (MDR) framework for UPI transactions, even as the fintech firm moved to clarify that co-founder and former CEO Ashneer Grover's public criticism of the move does not reflect the company's official stance.

BharatPe CEO Nalin Negi said the new framework, introduced by the National Payments Corporation of India, would help build a stronger and more sustainable payments ecosystem while keeping UPI free for consumers. "The new MDR framework proves that UPI will remain free for consumers while building a sustainable, robust and stronger payments ecosystem. Consumers continue to pay no charges for UPI, while micro and small merchants under the P2PM framework remain protected with Zero MDR," Negi said, according to news agency ANI.

Citing data shared by NPCI, Negi added that around 96 percent of person-to-merchant (P2M) transactions would remain unaffected by the new framework, which he said "creates resources to expand merchant acceptance, infrastructure and digital payment adoption, particularly across smaller towns and underserved markets," per ANI. He also reaffirmed BharatPe's positioning as a supporter of small merchants, stating the company has "always been a champion of the small merchant" and backs an approach that protects them while strengthening the broader ecosystem.

The comments come days after Grover, who co-founded BharatPe, publicly criticised the merchant charge levied on UPI transactions above Rs. 2,000, arguing it would ultimately be passed on to consumers. In a television interview, Grover said any such levy should be called a 'tax' rather than being framed as a 'charge' or 'MDR'. Responding to the argument that only merchants who can 'afford' the fee are being asked to pay it, Grover said, "Then call it tax. Why are you calling it a 'charge', 'MDR', or claiming that it won't affect the customer?"

BharatPe was quick to clarify that Grover's remarks carry no bearing on the company's official position. "Mr. Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity," a BharatPe spokesperson reportedly said.

The spokesperson added, "We urge members of the media not to attribute any statement or view expressed by Mr. Grover to the company. Our position on MDR framework and the digital payments ecosystem is represented by its current leadership and authorised spokespersons."