DPI Brief — July 21, 2026

UPI MDR Debate Resurfaces as June Transaction Volume Hits 22.7 Billion

India’s Unified Payments Interface (UPI) processed 22.72 billion transactions worth ₹28.92 lakh crore in June 2026, according to NPCI data released this week. The 731 banks live on UPI continue to drive volume, but the surge has reignited a long-standing debate on sustainability. The government is actively considering reintroducing the Merchant Discount Rate (MDR) on select UPI transactions — a fee that was zeroed out in January 2020 to accelerate adoption. Under the proposal being discussed, an MDR of below 0.5% would apply only to merchants with annual turnover of approximately ₹1-1.5 crore, and only for transactions exceeding ₹2,000. Person-to-person transfers and small merchants would remain unaffected. Banks and payment service providers have long argued that the zero-MDR regime makes infrastructure costs unsustainable at current volumes, though a final decision from the Centre is pending.

ONDC’s DigiDukaan Expands to Jaipur, Targets 1.4 Crore Kirana Stores

The Open Network for Digital Commerce (ONDC) is scaling its DigiDukaan initiative, designed to digitise India’s general trade ecosystem. Already live in Hyderabad and now expanding to Jaipur, the initiative has onboarded 12,000+ retailers across both cities. DigiDukaan provides kirana stores with a single digital interface for sourcing products across multiple brands and distributors, covering ordering, inventory management, and payments. The broader target is ambitious: digitising 1.4 crore kirana stores nationwide — a move aimed at strengthening the existing retail ecosystem rather than disrupting it. ONDC’s seller onboarding drive continues under the FMCG India umbrella, with the network positioning itself as the DPI layer for India’s unorganised retail sector.

ABDM Crosses 94 Crore ABHA Accounts; JIPMER Launches Registration Drive

The Ayushman Bharat Digital Mission (ABDM) has crossed 93.95 crore ABHA (Ayushman Bharat Health Account) registrations, with over 105 crore health records now digitally linked to the system. The milestone was announced alongside the 3rd Mission Steering Group meeting chaired by Union Health Minister J.P. Nadda on July 8-10, 2026, where convergence between ABHA, AB PM-JAY, and other health schemes was reviewed. Separately, JIPMER (Puducherry) launched a “Freedom from Illness Campaign” from July 16 to August 15, 2026, facilitating on-the-spot registration and generation of ABHA numbers, AB PM-JAY cards, and Ayushman Vay Vandana cards for eligible beneficiaries. With 90+ crore ABHA accounts now linked to scheme databases, the health DPI layer is approaching near-universal coverage.

TRAI Tightens Spam Framework; Proposes Mandatory Data Sharing by Call-Management Apps

The Telecom Regulatory Authority of India (TRAI) is moving to strengthen its anti-spam framework through proposed amendments to the Telecom Commercial Communications Customer Preference Regulations (TCCCPR). Under the Third Amendment Regulations, 2026, currently under consultation, call-management apps like Truecaller would be required to share user-reported spam data — including the flagged number, date and time of the call, and recipient details — with telecom operators. The move comes amid an ongoing public dispute between TRAI and Truecaller over data-sharing obligations. Separately, TRAI held an Open House Discussion on July 17 on the Draft Telecom Consumers Complaint Redressal (Fourth Amendment) Regulation, 2026, proposing multiple channels for complaint registration including website, mobile app, email, and in-person submission.

GeM Opens to UK Bidders Under New FTA; Vendor Assessment Workshop Held

India’s Government e-Marketplace (GeM) is set for international expansion under the UK-India Comprehensive Economic and Trade Agreement, which includes India’s first-ever government procurement chapter with market access schedules. UK firms will now be able to compete for central government tenders under fair and transparent rules, with UK-originating goods qualifying as “local suppliers” under Make in India preferences. On the domestic front, GeM conducted an in-person Vendor Assessment (VA) Workshop for prospective OEMs on July 17, 2026, continuing its efforts to broaden the seller base and improve procurement quality. GeM’s monthly data showed strong MSE procurement in June 2026, reinforcing the platform’s role in inclusive public procurement.

Sources: NPCI, ONDC, ABDM/NHA, TRAI, GeM, PIB, Economic Times, Moneycontrol, Medgate Today