UPI MDR: BharatPe distances itself from Ashneer Grover's remarks, says UPI to remain free for consumers
Earlier this week, the government introduced a 0.4% fee on transfers worth over 2,000 made to merchants via UPI platforms from October 15 onwards.
- Sep 18, 2026,
- Updated Sep 18, 2026 9:51 AM IST
Fintech firm BharatPe has distanced itself from statements made by its former co-founder and CEO Ashneer Grover against the new Merchant Discount Rate (MDR) framework for UPI merchant transactions. BharatPe's clarification comes after Grover's criticism of the UPI MDR changes on and off social media.
Earlier this week, the government introduced a 0.4% fee on transfers worth over 2,000 made to merchants via UPI platforms from October 15 onwards. Person-to-person (P2P) transactions and small payments are free from any charge.
"Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity. We urge members of the media not to attribute any statement or view expressed by Grover to the company. Our position on MDR framework and the digital payments ecosystem is represented by its current leadership and authorised spokespersons," a company spokesperson said.
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What has Ashneer Grover said on UPI MDR?
In a social media post, Grover said that the government should reconsider this "regressive step". "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," he wrote on X.
In an interview with Times Now, he questioned imposing a fee on merchants accepting UPI payments above ₹2,000 despite the government clarifying that UPI payments between two individuals will remain free of charge regardless of the amount.
“I find it quite amusing to watch all this because just when you think the government’s mistakes might have reduced, they seem to keep increasing. Let me make this clear, if I send Rs 1,000 to a friend through UPI, send Rs 1 lakh to a friend, or scan a QR code and make a payment of Rs 3,000, what is the cost of running the system in all three cases? It is the same,” Grover said.
BharatPe CEO Nalin Negi claps back
The fintech firm backed the new MDR framework firmly, with its CEO Nalin Negi saying that UPI will remain free for consumers as well as micro and small merchants. It added that roughly 96% of person-to-merchant (P2M) transactions are unaffected by the new framework.
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Negi said, “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 P2PM framework remain protected with Zero MDR. Importantly, around 96% of P2M transactions remain unaffected."
He added that the framework actually creates resources to expand merchant acceptance, infrastructure, and digital payment adoption, especially in smaller towns and underserved markets.
The BharatPe CEO said, "The framework creates resources to expand merchant acceptance, infrastructure and digital payment adoption, particularly across smaller towns and underserved markets. BharatPe has always been a champion of the small merchant, and we strongly support this approach that protects them while strengthening the ecosystem they depend on.”
Fintech firm BharatPe has distanced itself from statements made by its former co-founder and CEO Ashneer Grover against the new Merchant Discount Rate (MDR) framework for UPI merchant transactions. BharatPe's clarification comes after Grover's criticism of the UPI MDR changes on and off social media.
Earlier this week, the government introduced a 0.4% fee on transfers worth over 2,000 made to merchants via UPI platforms from October 15 onwards. Person-to-person (P2P) transactions and small payments are free from any charge.
"Grover has had no association with BharatPe since 2024 and is neither a shareholder nor associated with the company in any capacity. We urge members of the media not to attribute any statement or view expressed by Grover to the company. Our position on MDR framework and the digital payments ecosystem is represented by its current leadership and authorised spokespersons," a company spokesperson said.
MUST READ | GST on UPI MDR: Government rejects ‘tax on UPI’ rumours, says MDR will be set off through input tax credit
What has Ashneer Grover said on UPI MDR?
In a social media post, Grover said that the government should reconsider this "regressive step". "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," he wrote on X.
In an interview with Times Now, he questioned imposing a fee on merchants accepting UPI payments above ₹2,000 despite the government clarifying that UPI payments between two individuals will remain free of charge regardless of the amount.
“I find it quite amusing to watch all this because just when you think the government’s mistakes might have reduced, they seem to keep increasing. Let me make this clear, if I send Rs 1,000 to a friend through UPI, send Rs 1 lakh to a friend, or scan a QR code and make a payment of Rs 3,000, what is the cost of running the system in all three cases? It is the same,” Grover said.
BharatPe CEO Nalin Negi claps back
The fintech firm backed the new MDR framework firmly, with its CEO Nalin Negi saying that UPI will remain free for consumers as well as micro and small merchants. It added that roughly 96% of person-to-merchant (P2M) transactions are unaffected by the new framework.
DON'T MISS | ‘I don’t take critics like Ashneer Grover seriously’: PhonePe CEO Sameer Nigam responds to UPI MDR criticism
Negi said, “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 P2PM framework remain protected with Zero MDR. Importantly, around 96% of P2M transactions remain unaffected."
He added that the framework actually creates resources to expand merchant acceptance, infrastructure, and digital payment adoption, especially in smaller towns and underserved markets.
The BharatPe CEO said, "The framework creates resources to expand merchant acceptance, infrastructure and digital payment adoption, particularly across smaller towns and underserved markets. BharatPe has always been a champion of the small merchant, and we strongly support this approach that protects them while strengthening the ecosystem they depend on.”