Indian Bank considering absorbing acquiring-bank MDR on UPI above ₹2,000
Indian Bank is considering absorbing the acquiring-bank share of MDR for P2M UPI transactions above ₹2,000 starting October 15, 2026.
Normally, these charges would be 0.4% on payments over ₹2,000 (with a cap at ₹300 for really big transactions), but the bank wants to make things easier and cheaper for merchants, just like it already does with credit and debit cards.
Binod Kumar says merchant-charge API coming
The bank's MD and CEO Binod Kumar says this move could boost how many payments happen through Indian Bank.
To keep things transparent, they're rolling out an API soon to track any extra charges on merchant payments.
In the past six months in FY27, Indian Bank handled 32.6 crore UPI transactions, with about 5% being bigger payments, and continues to support small businesses with zero MDR on smaller monthly amounts.