BharatPe Supports New UPI MDR Framework, Clarifies Ashneer Grover’s Criticism Is Personal
New Delhi, September 17, 2026: BharatPe has publicly backed the newly introduced Merchant Discount Rate (MDR) framework for UPI payments, saying the move could help create a stronger and more sustainable digital payments ecosystem in India.
The company’s support for the framework comes amid a debate over the newly announced merchant charges on certain UPI transactions. BharatPe said the changes are aimed at ensuring the long-term sustainability of the digital payments system while keeping UPI free for consumers.
At the same time, the fintech company has made it clear that comments made by its co-founder and former CEO Ashneer Grover against the MDR framework do not represent BharatPe’s official position.
BharatPe says UPI will remain free for consumers
BharatPe CEO Nalin Negi said the new MDR framework is designed to maintain UPI as a free payment option for consumers while creating resources that can support the wider payments ecosystem.
According to Negi, consumers will continue to pay no charges for UPI transactions. He also highlighted that micro and small merchants covered under the Person-to-Merchant (P2PM) framework will continue to be protected through zero MDR.
The company said the framework could also help expand merchant acceptance, strengthen payment infrastructure and encourage further digital payment adoption, particularly in smaller towns and underserved markets.
Citing data shared by the National Payments Corporation of India (NPCI), Negi said around 96 per cent of person-to-merchant transactions would remain unaffected under the new framework.
BharatPe distances itself from Ashneer Grover’s comments
While BharatPe has backed the MDR framework, Ashneer Grover has publicly criticised the move.
Grover, who previously served as BharatPe’s CEO and co-founded the company, argued that the additional merchant charge on UPI transactions above ₹2,000 could eventually affect consumers because businesses may pass the cost on to customers.
In a television interview, Grover also questioned the terminology being used for the charge. He argued that if a levy is ultimately imposed in connection with UPI payments, it should be described clearly rather than being referred to as a merchant charge or MDR.
His comments have added another layer to the ongoing public discussion around the future of UPI payments and how the costs of maintaining and expanding the digital payments infrastructure should be handled.
However, BharatPe has stressed that Grover’s views are his own and should not be interpreted as the company’s position.
‘No association with BharatPe since 2024’
A BharatPe spokesperson said Grover has had no association with the company since 2024.
The company clarified that he is neither a shareholder nor associated with BharatPe in any capacity. It also urged media organisations not to attribute his statements or opinions on the MDR framework to the fintech firm.
According to the company, BharatPe’s official position is represented by its current leadership and authorised spokespersons.
This clarification comes as Grover’s past association with the company has continued to draw attention whenever he comments publicly on matters related to UPI, fintech or digital payments.
Focus on small merchants
BharatPe said its support for the framework is also linked to its long-standing focus on small merchants.
The company said the new approach would help protect smaller businesses while creating additional resources for the expansion of digital payment infrastructure.
For millions of small merchants across India, UPI has become an important part of everyday business, allowing customers to make quick digital payments without the need for cash. BharatPe said maintaining this ecosystem requires continued investment in infrastructure and wider merchant acceptance.
The company believes the new MDR framework can contribute to that effort while ensuring that consumers continue to access UPI without transaction charges.
Debate over the future of UPI payments
The issue has nevertheless sparked discussion among industry observers and business leaders over how the UPI ecosystem should be funded as digital transactions continue to grow.
Grover’s criticism focuses on the possibility that businesses could eventually transfer additional costs to customers. BharatPe, on the other hand, has argued that the framework can support the sustainability of the payments ecosystem while protecting consumers and smaller merchants.
For now, BharatPe’s position is clear: the company supports the new MDR framework and believes it can help strengthen India’s digital payments infrastructure.
The debate is likely to continue as businesses, payment companies and other stakeholders assess how the new framework will work in practice and what impact it may have on merchants and consumers.
News source: Information for this article was gathered from a variety of reliable news outlets.
