BharatPe backs new UPI MDR framework, distances itself from former CEO Ashneer Grover’s criticism

Fintech firm BharatPe on Thursday backed the new Merchant Discount Rate (MDR) framework for UPI merchant transactions, while distancing itself from criticism of the move by its co-founder and former CEO Ashneer Grover.

BharatPe said Grover's views were expressed in his individual capacity and did not represent the company's position. The fintech also clarified that Grover has not been associated with the company since 2024.

Also Read: UPI MDR above Rs 2,000 to attract 18% GST, merchants can claim input tax credit


"Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity," a company spokesperson said, urging the media not to attribute his statements to BharatPe.

The clarification followed Grover's criticism of the new UPI MDR framework on social media and at industry events.

"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 had said in a post on X.

BharatPe, however, said the new framework would help improve the economics of digital payments while keeping UPI free for consumers and protecting micro and small merchants.

"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 P2P framework remain protected with Zero MDR," BharatPe Chief Executive Officer Nalin Negi said.

Also Read: From UPI to cash? Retailers warn new MDR could hit small merchants ahead of festive season

Negi said around 96% of person-to-merchant (P2M) transactions would remain unaffected by the changes.

The new framework, announced earlier this week, will introduce a 0.4% MDR on UPI payments above Rs 2,000 made to merchants from October 15. The charge will be borne by merchants rather than consumers, while person-to-person payments and eligible small-value transactions will remain free.

According to BharatPe, the framework will also create resources to expand merchant acceptance, payment infrastructure and digital payment adoption, particularly in smaller towns and underserved markets.

The MDR marks a shift after nearly six years in which UPI payments remained free of such charges. The government and NPCI have said the new framework is intended to create a more sustainable revenue model for the digital payments ecosystem while encouraging greater participation and investment in merchant infrastructure.

BharatPe's support for the framework puts it at odds with Grover's public criticism of the move, although the company stressed that his comments should not be attributed to the fintech.

Grover co-founded BharatPe and served as its CEO before leaving the company.