# SBI to earn surplus from UPI MDR charges

> SBI expects to generate surplus revenue from new UPI transaction fees starting October 15.
- Title: SBI to earn surplus from UPI MDR charges · The Economic Times
- Summary: SBI expects to generate surplus revenue from new UPI transaction fees starting October 15. SBI anticipates surplus revenue from 0.4% merchant discount rate…
- Keywords: sbi, upi, merchant discount rate, payment gateway, issuing bank, acquiring bank, rs 2000, october 15, 0.4%, revenue surplus, earn, surplus
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-expects-surplus-from-new-upi-mdr-as-issuing-acquiring-bank/articleshow/134441532.cms
- Author: Joel Rebello
- Published: 2026-09-23T15:19:00+00:00
- Read time: 1 min
- Topics: sbi, upi, merchant discount rate, payment gateway, issuing bank, acquiring bank, rs 2000, october 15, 0.4%, revenue surplus
## New UPI fee rule
SBI will charge 0.4% merchant discount rate on UPI payments over rs 2000.

> Naturally as one of the largest card issuing banks we will get 40 basis points of the value
## SBI's revenue plan
SBI expects surplus from its large payment network and app services.

> We also have a payment system and an application services so it is fair to assume that we will make some money
## Fee split details
Issuing bank gets 0.40%, acquiring bank 0.30%, gateways 0.20%, apps 0.10%.

> Since we are both a large acquiring and issuing bank we will automatically get a large chunk of the amount
## SBI's concerns
SBI worries about transaction splitting and system pressure.

> There are also reports that people will split the transactions to avoid charges
## SBI's financial strength
SBI has $10 billion from fcnr (b) inflows and rs 5.5 lakh crore deposits.

> We annually garner rs 5.5 lakh crore from normal deposits which we comfortably deploy
## What happens next
SBI will evaluate MDR impact on smaller banks and systems.

> We have to evaluate all those aspects
## Key takeaway

SBI anticipates surplus revenue from 0.4% merchant discount rate on UPI payments over Rs 2,000 starting October 15.