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Thursday, September 17, 2026

Citizen Observation 45 of 777 | UPI MDR | SEBI HEARS THE BROKERS | WHO WILL HEAR THE COMMON CITIZEN?

 Published 17 th September 2026

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru

https://in.linkedin.com/in/prashantnayakanti

 

1. The INTRO

A policy framework can affect different stakeholders in different ways.

When a stakeholder identifies a concern, raises it with the appropriate authority and receives a response, that becomes part of the policy conversation.

Stockbrokers have raised concerns. SEBI has said it will examine those concerns.

But this raises a broader question:

If the concerns of brokers can reach the regulator, can the concerns of the common citizen also reach the policy table?

This Citizen Observation is not about questioning whether brokers should be heard.

They should.

It is about asking whether the common citizen should also have a visible avenue to place a measurable policy suggestion before the decision-makers.

And this time, the suggestion is not merely a question.

It comes with a number.


2. THE TRIGGER

The immediate trigger for CO45 is the reported response of SEBI Chairman Tuhin Kanta Pandey to concerns raised by stockbrokers regarding the new UPI MDR framework.

Pandey said that SEBI would examine the issues raised by brokers and look at how they could be eased.

The significance for this Citizen Observation is not whether the broker concerns are ultimately accepted.

The significance is the policy-feedback mechanism:

Concern raised Regulator responds Issue gets examined.

That is an important part of how policy can evolve.

But it also provides an opportunity to ask a citizen-facing question:

What happens when the common citizen has a concern?

The UPI MDR framework is not merely a technical payment-system change. The structure of thresholds and charges can influence how different participants experience the digital-payment ecosystem.

So, alongside stakeholder concerns, can there also be room for a simple, measurable citizen suggestion?

CO45 attempts to place one on the table.


3. PROSPECTIVE AUDIENCE

This observation is deliberately addressed to three audiences:

PMO — Decision Maker

The primary audience for placing the citizen proposal at the policy level.

SEBI — Interested Party

SEBI is directly relevant to this conversation because its Chairman has publicly responded to concerns raised by stockbrokers regarding UPI MDR.

Common Citizen — Most Affected Party

The citizen is not merely an observer of the policy conversation.

The citizen is one of the participants whose everyday digital-payment behaviour is shaped by the framework.

Prospective Audience: PMO | SEBI | The Common Citizen

And the central question remains:

SEBI hears the brokers.
Who will hear the common citizen?


4. ABOUT THE ISSUE

The new UPI MDR framework introduces differentiated treatment for certain Person-to-Merchant (P2M) transactions.

Under the framework, specified P2M UPI transactions up to ₹2,000 remain outside MDR, while transactions above ₹2,000 attract MDR according to the applicable category. The framework is scheduled to take effect from 15 October 2026.

The ₹2,000 threshold therefore becomes an important reference point.

But a threshold created at one point in time does not necessarily remain equally relevant as transaction values change.

This is where CO44 raised the first citizen question:

IF THE BASKET GROWS, CAN THE FREE SLAB GROW TOO?

CO44 proposed:

₹2,000 2,100 2,200

CO45 takes that thought one step further.

Rather than beginning the annual progression from ₹2,000, could the threshold first be reset to ₹2,500 when the new framework comes into effect?

And thereafter:

₹2,500 2,600 2,700 2,800

with an annual increase of ₹100 every October.

The proposal is deliberately simple.

It does not attempt to redesign the entire UPI MDR framework.

It asks whether the starting point itself can be reconsidered, followed by a predictable annual adjustment.

CO44 asked whether the slab can grow.
CO45 asks whether the slab should first be reset — and then allowed to grow.

This is not presented as the only possible answer.

It is one measurable option placed before the decision-makers for consideration.


5. ONE MEASURABLE SUGGESTION

Reset the Slab. Then Let It Grow.

New Delhi. September 2026.

A concern has been placed on the table.

Stockbrokers have raised concerns about UPI MDR.

At the policy table, SEBI Chairman Tuhin Kanta Pandey has said that SEBI will examine those concerns and see how they can be eased.

Now, imagine another voice entering that same policy conversation.

Not a broker.

Not an industry association.

A common citizen.

And instead of arriving with a complaint, the citizen arrives with one number, one date and one simple mechanism.

₹2,500.

The citizen suggestion:

Reset the UPI MDR free slab from ₹2,000 to ₹2,500 from October 2026.

Then let it move predictably:

₹2,500 2,600 2,700 2,800 2,900

with ₹100 added every October.

October

Proposed Slab

2026

₹2,500

2027

₹2,600

2028

₹2,700

2029

₹2,800

2030

₹2,900

Thereafter

+₹100 every October

Why this suggestion?

Because the citizen is not asking for an open-ended exemption or a complicated new mechanism.

The proposal has:

A number — ₹2,500
A date — October 2026
An increment — ₹100
A frequency — every October

The annual increment can be reviewed by the appropriate authorities if circumstances warrant a different approach.

So the proposal is not presented as the only answer.

It is one concrete option placed before the decision-makers — to accept, modify or reject.

And here is the citizen's moment at the table:

The brokers have placed their concern.
SEBI has said it will hear them.

Here is the common citizen's proposal.

₹2,500 now.
₹100 more every October.

One number. One date. One predictable path.


6. READY-TO-USE SOLUTION

RESET INDEX REVIEW

RESET

₹2,000 2,500 from October 2026

INDEX

₹2,500 2,600 2,700 2,800 2,900

+ ₹100 every October

REVIEW

The mechanism can be reviewed periodically by the appropriate authorities and modified if circumstances warrant.

One simple mechanism. One measurable citizen option.


7. WHY IT HELPS

A predictable annual adjustment could provide:

Predictability — a clearly defined annual movement.

Transparency — the adjustment is visible rather than requiring a fresh policy discussion each time.

Simplicity — one number, one annual increment and one review mechanism.

Citizen participation — a general concern becomes a specific policy option.

It does not assume that ₹2,500 or ₹100 is permanently correct.

It simply places a measurable option before the appropriate decision-makers:

Consider it. Modify it. Or reject it.

But let the citizen proposal be heard.


8. CLOSING THOUGHT

SEBI HEARS THE BROKERS.
WHO WILL HEAR THE COMMON CITIZEN?

A stakeholder raised a concern.

The concern reached the regulator.

The regulator said it would examine the issue.

Now the common citizen places a different kind of concern on the table — not merely a complaint, but a measurable suggestion.

₹2,500 from October 2026.
₹100 more every October thereafter.

If stakeholders can put their concerns on the table, can the common citizen's concern have a seat at the same table?


9. THE WHITEBOARD

THE BROKERS BROUGHT A CONCERN.

THE CITIZEN BRINGS A NUMBER.

₹2,500 2,600 2,700 2,800

+ ₹100 EVERY OCTOBER


10. DISCLAIMER

Citizen Observation 777 is intended to start conversations, not conclude them.

This proposal is offered purely from a citizen's perspective and may be accepted, modified, reviewed or rejected by the appropriate authorities based on wider policy considerations.

A beginning has to be made, and this is the beginning.


11. APRIL 11 — DIGITAL TRANSACTIONS DAY

April 11 — Digital Transactions Day

UPI began its beta journey on April 11, 2016.

Digital payments are shaped not only by transactions, but also by the rules and choices that govern them.

CO45 is one small citizen suggestion in that continuing journey:

As there seem to be opportunities for stakeholders to put forward their suggestions, this is one small step towards that.

As of now, I am not sure what shape this will take, but the prayer for the limit to be increased to ₹2,500/- will continue.

Listen to the stakeholders. Hear the citizen. Keep improving the system.

The guide for Citizen Observation 45 is Chapter 2, Verse 47 of the Bhagavad Gita, where Lord Krishna tells Arjuna that you have a right to do your work, but you do not control the results.

The only Joy is —

The Joy of Digital Transactions

Advocating Digital Transactions Day (April 11)

This version retains your important distinction: the proposal is being pursued with effort, but without claiming control over the outcome.

 

The Joy of Digital Transactions

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru
Advocating Digital Transactions Day (April 11)

Author’s Blogs

https://prashantrandomthoughts.blogspot.com
https://prashantnepayments.blogspot.com
https://innovationinbanking.blogspot.com

 


Wednesday, September 16, 2026

Citizen Observation 44 of 777 | UPI MDR | The ₹2,000 Free Slab Should Grow by ₹100 Every Year

  

Published 16th September 2026

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru

https://in.linkedin.com/in/prashantnayakanti

 

The Short Intro

At 8:30 in the morning, Ramesh stops at his neighbourhood kirana store in Bengaluru.

A little later, Asha picks up rice, dal, cooking oil, vegetables and milk from a supermarket in Mysuru. In Hyderabad, Meena pays for a similar basket of everyday essentials.

Different people. Different places. Different baskets.

But today, one number sits quietly underneath these everyday purchases:

₹2,000.

The new UPI MDR framework keeps P2M transactions up to ₹2,000 outside the standard MDR slab.

But should that number remain frozen while the price of the basket keeps moving?


The Trigger

On 15 September 2026, NPCI announced the UPI MDR framework under which a 0.40% MDR applies to Person-to-Merchant transactions above ₹2,000, while the standard MDR does not apply to transactions up to ₹2,000. The framework takes effect from 15 October 2026.

The intention is clear: protect everyday, small-value UPI payments.

But everyday life keeps changing.

The rice that Ramesh buys today will not necessarily cost the same next year.

The dal, cooking oil, vegetables and milk in Asha's basket will not necessarily remain at today's prices.

The basket changes.

So, instead of revisiting the MDR threshold every year, perhaps there is a simpler citizen-friendly approach:

₹2,000 today.
₹2,100 next year.
₹2,200 the year after.

A small, predictable ₹100 annual increase.

Can the ₹2,000 Free Slab grow by ₹100 every year?

Prospective Audience

Who would notice the difference?

Ramesh, buying the weekly groceries at a kirana store in Bengaluru.

Asha, paying for a household basket at a supermarket in Mysuru.

Meena, buying provisions for her family in Hyderabad.

Suresh, stopping at a neighbourhood store in Vijayawada.

And thousands of similar customers across India — not necessarily making one large purchase, but gradually seeing the same everyday basket become more expensive.

For them, the question is not about MDR mathematics.

It is much simpler:

Will the free UPI slab keep pace with the everyday basket?

The proposal is therefore aimed at the future value of the ₹2,000 threshold, rather than changing today's ₹2,000 threshold.

 

Act I — Today's Basket

Today, ₹2,000 is a clearly defined line.

A family buys its rice, dal, cooking oil, vegetables, milk and other essentials.

The basket reaches:

₹1,850 — within the free slab.

Add a few more essentials:

₹2,050 — now above the ₹2,000 line.

The basket has changed by only ₹200.

But the threshold has not moved.

 

Act II — The Same Basket, Another Year

Now move the calendar forward.

The same family.

The same kirana store.

The same rice.

The same dal.

The same cooking oil.

The same vegetables.

But prices have moved.

What was a ₹2,000 basket may gradually become a ₹2,100 basket.

Then perhaps ₹2,200.

The point is not to predict prices.

It is simply to recognise that a fixed monetary threshold does not automatically retain the same purchasing relevance over time.

 

Act III — One Small Automatic Step

So, instead of waiting for another policy discussion every year, could the threshold itself have a simple pre-defined movement?

15 October 2026
₹2,000

15 October 2027
₹2,100

15 October 2028
₹2,200

And continue with the same ₹100 annual increase.

No new payment rail.

No new customer process.

No complicated technology.

Just one number, moving predictably once a year.

The Whiteboard

IF THE BASKET GROWS,
CAN THE FREE SLAB GROW TOO?

Why It Helps

A pre-defined annual increase would make the ₹2,000 free slab predictable rather than periodically revisited.

It could:

  • keep the free slab more relevant to everyday household baskets as prices change;
  • give merchants and customers a known threshold for the coming year;
  • avoid the need for a fresh threshold discussion every year;
  • retain the simplicity of the existing framework — one threshold, one automatic annual adjustment.

The proposal does not suggest changing the ₹2,000 threshold immediately.

It simply asks whether the framework could say:

₹2,000 in Year 1.
₹2,100 in Year 2.
₹2,200 in Year 3.
And so on.

A small annual adjustment could keep a small-value protection designed for today's basket relevant to tomorrow's basket.

 

Nothing More — Nothing Less

This is not a proposal to remove MDR.

It is not a proposal to change the 0.40% rate.

It is not a proposal to redesign UPI.

It is simply one question about the ₹2,000 free slab:

Can the threshold itself grow by ₹100 every year?

The framework already provides the number.

This Citizen Observation only asks whether that number should be allowed to move with time.

Closing Thought

₹2,000 is not just a number.

For a customer, it can represent a basket of rice, dal, cooking oil, vegetables, milk and other everyday essentials.

Today, that basket may fit below the line.

Tomorrow, it may not.

So perhaps the question is not whether the ₹2,000 free slab is appropriate today.

Perhaps it is:

Can we make sure the free slab remains relevant tomorrow?

₹2,000 today.
₹2,100 next year.
₹2,200 the year after.

One small, automatic step every year.

Because a threshold designed for everyday payments should have a way to grow with everyday life, without much stress.

 

 

April 11 Digital Transactions Day

April 11 -  UPI Beta Launch

UPI has made everyday payments increasingly simple.

From a ₹100 purchase to a ₹2,000 household basket, the convenience is in the ability to pay digitally without thinking about the payment itself.

As the UPI ecosystem evolves, the framework around those everyday payments will evolve too.

This Citizen Observation is one small suggestion within that journey:

If the everyday basket can grow with time,
perhaps the ₹2,000 free slab can grow with it.

₹2,000 2,100 2,200

A predictable annual movement.

Nothing More — Nothing Less.


Disclaimer

This is a Citizen Observation, not a representation of NPCI, RBI, any bank, UPI app, merchant, or other institution.

The suggestion is limited to the annual ₹100 increase in the ₹2,000 threshold and does not comment on the other provisions of the UPI MDR framework. Let the threshold grow, without much stress.

The views expressed are personal and intended to encourage constructive citizen dialogue.

 

The Joy of Digital Transactions

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru
Advocating Digital Transactions Day (April 11)

Author’s Blogs

https://prashantrandomthoughts.blogspot.com
https://prashantnepayments.blogspot.com
https://innovationinbanking.blogspot.com











Tuesday, September 15, 2026

Citizen Observation 43 of 777 | Awesome NPCI BHIM Team | No Choice, but to be Back

 Published 15th September 2026

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru

https://in.linkedin.com/in/prashantnayakanti

 

The Intro – No choice but to be back on NPCI BHIM

Did you notice the difference in the new NPCI BHIM?


 The Trigger

Sometimes, the most interesting citizen observation is not about what is missing.

It is about noticing what has changed.

In June 2026, I came back to NPCI BHIM as my primary UPI app — simply to use it as an everyday citizen and observe where the journey would lead.

The June Blog Post @ https://prashantnepayments.blogspot.com/2026/06/i-am-back-npci-bhim-where-my-next-upi-journey-begins.html

Then came July.

The July Blog Post @

https://innovationinbanking.blogspot.com/2026/07/blog-post.html

 

One very specific observation emerged:

The most-used feature should be the easiest to find.

That observation was about Scan & Pay and its discoverability.

And then came 10 September 2026.

I opened BHIM again.

Something immediately caught my attention.

 

Citizen Observation

Act I — I Was Looking for Scan & Pay

In July, the QR Scan & Pay journey was there.

The large QR button existed.

But for my everyday usage pattern, it did not feel immediately discoverable.

That became the observation.

Not about features.

Not about performance.

Not about cashback.

Not about anything else.

Just one simple citizen question:

Can the most-used payment action be the easiest one to find?

 

Act II — I Am Back

September 10.

BHIM opened.

And this time, the QR Scan & Pay button was visibly larger and more prominent.

That was the only change I wanted to notice.

Everything else on the screen can wait.

The only thing I am looking at here is:

The QR Scan & Pay button.

July September.

Then Now.

Something had changed.

 

Act III — Awesome, NPCI BHIM Team

Was this change made because of one citizen's observation?

I don't know.

And I don't need to know.

There could be many reasons behind a product interface changing.

But as a citizen who had written about the discoverability of Scan & Pay in July, opening the app again in September and seeing a more prominent QR Scan & Pay button was worth acknowledging.

So, simply:

Awesome, NPCI BHIM Team.

No demand.

No expectation.

No follow-up.

Just an observation.

 

The Citizen Observation

Sometimes feedback doesn't need a reply.

Sometimes the most interesting reply is simply:

Something changes.

And sometimes, as citizens, we may notice that change only because we were paying attention.


Whiteboard

THE QR SCAN & PAY BUTTON IS BIGGER.
I AM BACK.


Closing Thought

June:

I am back.

July:

I was looking for Scan & Pay.

September:

I am back again.

The QR Scan & Pay button is bigger.

That's it.

Nothing more.

Nothing less.


April 11 - Digital Transactions Day

April 11 – UPI Beta Go Live Day

 

Everyday digital payments are often about very small moments.

Open.

Find.

Scan.

Pay.

When the action you need becomes a little easier to find, the journey becomes a little more natural.

Technology helps us stay connected.
Presence helps us stay close.


Disclaimer

This is a personal citizen observation based only on comparing the BHIM interface observed in July 2026 with the interface observed on 10 September 2026.

The observation is limited specifically to the increased prominence/size of the QR Scan & Pay button.

It is not a product review, feature comparison, endorsement, criticism, or claim about why the interface changed.

The only Joy is – The Joy of Digital Transactions.

Nothing More - Nothing Less

 

The Joy of Digital Transactions

Nayakanti Prashant
3rd Gen Banker & Citizen Lobbyist – Bengaluru
Advocating Digital Transactions Day (April 11)

Author’s Blogs

https://prashantrandomthoughts.blogspot.com
https://prashantnepayments.blogspot.com
https://innovationinbanking.blogspot.com



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All efforts have been made to make this information as accurate as possible, N Prashant will not be responsible for any loss to any person caused by inaccuracy in the information available on this Website. Relevent Official Gazettes Communications may be consulted for an accurate information. Any discrepancy found may be brought to the notice of N Prashant