MDR a Small Fee, Will Not Have Major Impact on UPI Volumes: RBI Governor Sanjay Malhotra

RBI governor Sanjay Malhotra has clarified that MDR, that is, Merchant Discount Rate, a small fee, will not have a major impact on UPI volumes. He said on Wednesday that it would not significantly affect the volume of UPI transactions.

He told reporters at the Central Bank headquarters that, as of now, we do not see any drop in volumes. And I don’t personally think that a small fee will have a major impact on the volumes.” According to PTI, it should be mentioned that the administration permitted MDR charges last month, which will result in a fee of 0.4 percent for transactions above Rs. 2,000.

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Repo Rate:

According to Malhotra, who spoke to reporters hours after announcing a rate hike and making it clear that a rate cut is not out of the question, banks’ credit growth will remain robust in the future and will continue to support the broader economic activity. After a 25 basis point increase was revealed by the Monetary Policy Committee (MPC) on October 7, 2026, the RBI repo rate is now at 5.50 percent.

FCNR(B):

According to the Governor, the nation’s macroeconomic fundamentals are strong, as shown by the FCNR(B) scheme, under which banks raised over 133 billion USD in deposits from the diaspora using a concessional swap facility.