BharatPe, one of India’s largest fintech companies, has fully supported the new Merchant Discount Rate (MDR) proposed by the National Payments Corporation of India (NPCI). The company believes that this move will help create a more robust and sustainable digital payment ecosystem in the country. On the other hand, the company’s co-founder and former CEO, Ashneer Grover, has strongly criticized the policy, stating that it will ultimately place a burden on consumers.
The company’s CEO, Nalin Negi, has clarified that the new MDR framework ensures UPI remains completely free for customers. Negi stated that under the new MDR framework, UPI will continue to be free for consumers. Additionally, a sustainable, robust, and advanced payment ecosystem will be created. Customers will not have to pay any charges for UPI. Small and micro-merchants will remain protected under the zero-MDR regime.
Citing NPCI data, Negi stated that approximately 96 percent of person-to-merchant (P2M) transactions will remain unaffected, as this framework establishes the necessary resources for merchant acceptance, infrastructure, and the adoption of digital payments. He reiterated that small merchants would remain shielded under the zero-MDR policy.
What did Ashneer Grover say?
Ashneer Grover criticized the recently announced merchant charges on UPI transactions exceeding ₹2,000. He claimed that the ultimate impact of this move would fall upon the customers. In a TV interview, Ashneer Grover stated that any fee applied to UPI payments should be explicitly termed a ‘tax’. Speaking to Times Now, he remarked, “Just call it a tax. Why do you call it a charge or MDR, or claim that it won’t impact the customer?”
BharatPe has distanced itself from these remarks. A company spokesperson issued a statement clarifying that Ashneer Grover has had no association with the company since 2024; he is neither a shareholder nor holds any position within the firm. Therefore, his statements represent his personal opinion and do not reflect the stance of BharatPe.
