World • 1 min read • Oct 12, 2026

Iit-b Report Wants UPI MDR Cut; Says Banks Should Forgo Their Share

The study recommends setting the MDR share for TPAPs at 0.06%, lower than the 0.08% proposed by the National Payments Corporation of India (NPCI), while keeping the PSP share unchanged at 0.02%. Under the existing arrangement, banks that issue and ac...

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Iit-b Report Wants UPI MDR Cut; Says Banks Should Forgo Their Share

New reporting has brought renewed attention to the World arena, where The study recommends setting the MDR share for TPAPs at 0.06%, lower than the 0.08% proposed by the National Payments Corporation of India (NPCI), while keeping the PSP share unchanged at 0.02%. Dispatches according to dispatches from Times of India World & Asia Wire point to an evolving situation with noteworthy secondary impacts.

Executive Key Takeaways

Primary Signal: The study recommends setting the MDR share for TPAPs at 0.06%, lower than the 0.08% proposed by the National Payments Corporation of India (NPCI), while keeping the PSP share unchanged at 0.02%.
Contextual Driver: Under the existing arrangement, banks that issue and acquire transactions collectively receive the bulk of the revenue, with a 70% share split between them
Strategic Outlook: Market and policy watchers anticipate critical regulatory and macroeconomic responses.

Market & Strategic Implications

Beyond immediate headlines, market participants are weighing secondary effects. The intersection of capital allocations, regulatory scrutiny, and shifting macroeconomic postures continues to elevate risk sensitivity across comparable assets and jurisdictions.

As further clarity emerges in upcoming briefings, institutional observers emphasize unit economics, policy enforcement, and counterparty exposure as primary barometers for long-term trajectory.