BharatPe has backed the newly introduced Merchant Discount Rate (MDR) framework for UPI transactions, saying the move will help create a stronger and more sustainable digital payments ecosystem. The fintech company also clarified that comments made by its co-founder and former CEO Ashneer Grover on the issue do not represent BharatPe's position.
BharatPe CEO Nalin Negi said the new framework would allow UPI to remain free for consumers while creating resources to strengthen the payments infrastructure. He said micro and small merchants covered under the person-to-person-to-merchant (P2PM) framework would continue to receive protection through zero MDR.
The company said, citing data shared by the National Payments Corporation of India (NPCI), that around 96% of person-to-merchant (P2M) transactions would remain unaffected under the new framework. BharatPe said the framework would help support merchant acceptance, digital payment infrastructure and wider adoption, particularly in smaller towns and underserved markets.
“Consumers continue to pay no charges for UPI,” Negi said, adding that BharatPe supports measures aimed at protecting small merchants while strengthening the wider payments ecosystem.
The company's clarification came after Ashneer Grover publicly criticised the new merchant fee structure. Grover argued that charges associated with UPI transactions above ₹2,000 could ultimately be passed on to customers. In a television interview, he questioned the terminology being used for the levy and said that if consumers ultimately bear the cost, it should be described as a tax rather than a charge or MDR.
BharatPe has made it clear that Grover's views are personal. A company spokesperson said Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity.
The spokesperson also asked the media not to attribute Grover's statements to BharatPe, saying that the company's position on the MDR framework and digital payments is represented by its current leadership and authorised representatives.
The debate over UPI MDR comes as the digital payments ecosystem continues to expand across India. While the new framework is intended to create resources for the payments infrastructure, questions have also been raised by some observers and industry voices about how merchant costs could affect customers and businesses.
BharatPe's latest statement therefore separates the company's official position from the views expressed by its former CEO, while reiterating its support for the new MDR framework and its focus on small merchants.
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