CONNECT WITH US
Fintech

Fintech

Bank of India expects to gain nearly Rs 100 crore a quarter from UPI MDR

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Bank of India expects to gain nearly Rs 100 crore a quarter from UPI MDR

Bank of India expects to gain nearly Rs 100 crore a quarter from UPI MDR

The proposed 0.4 per cent merchant discount rate (MDR) on eligible UPI merchant transactions above Rs 2,000 could open up a new revenue stream for banks, with Bank of India expecting to gain nearly Rs 100 crore from the framework. BoI had more than 11.01 lakh POS terminals and QR codes as of September 30, 2026, according to its investor presentation.

State owned Bank of India expects to gain nearly Rs 100 crore from the proposed merchant discount rate (MDR) on select Unified Payments Interface (UPI) transactions on a quarterly basis, its Managing Director & CEO Rajneesh Karnatak told ETBFSI. The estimate comes as the government introduces a fee framework for select high-value merchant transactions on UPI, creating a new revenue stream for banks and payment companies. Brokerages estimate that the move could generate an annual revenue pool of Rs 15,000-20,600 crore for the digital payments and banking ecosystem, although the eventual gains will depend on eligible transaction volumes and the role individual institutions play in the payment chain.

77 billion in the year-ago quarter. The value of these transactions rose 44 per cent year-on-year to Rs 12,039 billion from Rs 8,354 billion. 01 lakh point-of-sale (POS) terminals and QR codes as of September 30, 2026, according to the presentation. It has also launched a UPI-linked RuPay credit card under the PM SVANidhi scheme for street vendors and is developing its interoperable Banking Connect platform for merchant transactions.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.