Fintech giant BharatPe has officially distanced itself from remarks made by its former co-founder and CEO, Ashneer Grover, regarding the recently introduced Merchant Discount Rate (MDR) framework for UPI merchant transactions. The company emphasized that Grover has had no association with BharatPe since 2024 and does not represent its views.
New UPI MDR Framework Explained
Earlier this week, the government implemented a 0.4% fee on UPI transfers exceeding ₹2,000 when made to merchants, effective October 15. This new charge aims to bolster the digital payments infrastructure. However, person-to-person (P2P) transactions and smaller payments remain exempt from any fees, ensuring that everyday consumer transactions are unaffected.
Ashneer Grover's Stance on UPI MDR
Ashneer Grover, known for his outspoken views, publicly criticized the new MDR framework across social media and in interviews. He labeled the move a "regressive step," warning that it could undermine the success of mobile payments in India. Grover argued that imposing a fee on merchants for accepting UPI payments, even for amounts above ₹2,000, was ill-conceived, especially given the government's clarification that P2P payments would remain free regardless of the amount.
"Any MDR on UPI will kill the one thing in India which is working like clockwork, i.e., mobile payments. It's a regressive step the government should reconsider," Grover stated in a social media post.
BharatPe's Official Position
In stark contrast to Grover's criticism, BharatPe firmly supported the new MDR framework. Nalin Negi, CEO of BharatPe, asserted that the changes would ensure UPI remains free for consumers, as well as for micro and small merchants. Negi highlighted that approximately 96% of person-to-merchant (P2M) transactions would remain unaffected by the new fee.
"The new MDR framework proves that UPI will remain free for consumers while building a sustainable, robust and stronger payments ecosystem," Negi stated. He added that the framework is crucial for generating resources to expand merchant acceptance, enhance infrastructure, and accelerate digital payment adoption, particularly in smaller towns and underserved markets. BharatPe, a long-time advocate for small merchants, views this approach as one that protects them while strengthening the broader digital payments ecosystem.