UPI row: Govt rejects claims of US pressure, cites NPCI circular, RuPay advantage; BharatPe backs move

The finance ministry on Thursday dismissed allegations that US pressure influenced the decision to levy a Merchant Discount Rate (MDR) on high-value UPI payments, citing the latest National Payments Corporation of India (NPCI) guidelines, which continue to offer an advantage to RuPay cards over international competitors.

“The NPCI circular of September 15, 2026, does not allow credit transactions on UPI by any other credit card other than the RuPay credit card. There is a clear policy of only allowing RuPay credit card on UPI to enable RuPay credit card to become the preferred choice of credit card amongst users in India,” the department of financial services (DFS) wrote on X.