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Brajesh Singh
Brajesh Singh
Managing Director & CEO, Canara Bank
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MDR Fee On UPI | Currently Paying ₹300-400 Cr Fess & That Could See An Impact: Canara Bank

📅 Oct 01, 2026 CNBC-TV18 11 MIN 459 VIEWS 39 SEGMENTS · 3 SPEAKERS
MDR On UPI From Oct 15 | How Much Will It Impact Banks? Brajesh Kumar Singh Of Canara Bank To CNBC-TV18 Fuel, utility will have a flat MDR charge of Rs 5; Hence not much of an earning potential for us Currently paying Rs 300-400 cr as fees and that could see an impact #merchantdiscountrate #upi #upipayments #canarabank #mdrcharge #2026canarabankgrowth #cnbctv18 #cnbctv18market #businessnews #businessnewstoday #businessnewsinenglish #sharemarkettoday 🔴CNBC TV18 LIVE TV: https://youtube.com/live/P857H4ej-MQ SUBSCRIBE to our Channel: https://bit.ly/3nvEcxf ------------------------------------...

What Brajesh Singh said

Written from the verified transcript and checked against it. Every figure links to the moment it was said.

Canara Bank CEO Brajesh Singh discussed the bank's exposure to the Maharashtra farm loan waiver, the impact of MDR on UPI transactions, and the bank's insurance business. Singh said the bank has little exposure in drought-prone Maharashtra areas, with only Kisan credit card accounts slightly affected, and that restructured loans will not immediately hit NPAs or the P&L. On UPI MDR, he noted that 96% of transactions are under ₹2,000 and thus exempt, with flat charges for fuel, insurance, and utilities, so the bank will recoup only about half of its ₹900 crore annual spend, around ₹450 crore. He said the rollout is scheduled for October 15, declined to comment on delays, and called the ₹1 lakh monthly exemption sufficient. Singh also highlighted the bank's 10,131 branches distributing Canara HSBC Life Insurance and its 11 crore customer base as potential for future innovation once UPI becomes an economic model.

Key takeaways

  1. The bank will recoup about ₹450 crore, half of its ₹900 crore annual UPI spend, from MDR fees.
  2. 96% of UPI transactions are below ₹2,000, making them exempt from MDR charges.
  3. The MDR rollout is scheduled for October 15, and Singh declined to comment on any deferral demand.
  4. Singh called the ₹1 lakh monthly exemption threshold for small merchants sufficient.
  5. The bank's 11 crore customer base positions it to benefit once UPI becomes an economic model.

Numbers and commitments

FigureWhat it refers toTypeAt
₹900 crore Annual UPI spend on switch and interchange fees metric 5:13
₹450 crore Estimated annual recoupment from MDR fees guidance 5:13
96% Share of UPI transactions below ₹2,000 metric 3:46
300-400 crore Current annual switch or interchange fees paid metric 3:46
0.16% MDR share going to the issuing bank metric 5:13
0.08% MDR share going to the payment service provider metric 5:13
0.12% MDR share going to the beneficiary bank metric 5:13
19,000 crore Net profit after tax last year metric 3:46
10,131 Number of branches distributing Canara HSBC Life Insurance metric 2:42
11 crore Customer base for potential UPI business solicitation metric 9:08

Chapters

  1. 0:00Maharashtra farm loan waiver exposure
  2. 1:23Kisan credit card restructuring impact
  3. 2:42Insurance distribution with Canara HSBC
  4. 3:12UPI MDR fee impact on bank
  5. 6:33MDR rollout date and deferral demand
  6. 7:08Exemption threshold for small merchants
  7. 9:08Future UPI revenue potential for banks

Questions asked in this interview

11
  1. 0:00... exposure to the drought-hit areas in Maharashtra, and are there any early — were there any signs or evidence of collection efficiency dropping on account of the drought, inability to make payments, or the asset quality deteriorating?
  2. 1:16So you were saying the Kisan credit card might be a bit of an issue. Can you explain that?
  3. 1:50So does that show up in your NPA?
  4. 2:02So how will it show up in your P&L, sir?
  5. 2:26Now what is the fee income that you'll depend on from insurance, and on account of the proposals, if they're codified into law, what will be the impact?
  6. 3:12Help us out with what will your share be as of now, and is it a little better than what you all were expecting?
  7. 4:58You're saying that it'll be very, very small for you all, there are exemptions as well as you rightly pointed out, but have you done any rough math in terms of what kind of revenue could come in for a bank like yours?
  8. 6:17Do you think that will happen?
  9. 6:56How do you think about it?
  10. 7:31I'm just trying to get your view as a bank in it. What about merchant-to-merchant transactions?
  11. 7:51Do you think a year out, if everything settles down, banks can become big players for themselves in this space?
Interviewer 0:00 ↗
All right, let's invite in the show. Canara Bank CEO. The stock has slumped in 2026 so far, down over 20%. But there's so much news flow as we enter into the earnings season around MDR, the Maharashtra farm loan waiver, and more. What does it mean for the bank's outlook and guidance? We have Mr. Brajesh Singh, MD and CEO at Canara Bank. Thank you, sir, for joining in. How about we begin with the farm loan waiver part on Maharashtra in particular. Can you give your bank's exposure to the drought-hit areas in Maharashtra, and are there any early — were there any signs or evidence of collection efficiency dropping on account of the drought, inability to make payments, or the asset quality deteriorating?
Brajesh Singh 0:44 ↗
No, no, we do not have much exposure in the drought-prone areas in Maharashtra. So we do not see, and only the Kisan credit card things will be a little bit affected, but again there will be government dispensation also from SLBC, State Level Bankers Committee. Those districts are declared as distress districts. So we go for restructuring, we allow this thing, different payments and all. So that way, whenever there is some...
Interviewer 1:14 ↗
Kisan credit card could be a bit of an issue.
Brajesh Singh 1:16 ↗
Yes, ma'am. Yes.
Interviewer 1:16 ↗
So you were saying the Kisan credit card might be a bit of an issue. Can you explain that?
Brajesh Singh 1:23 ↗
No, see, that is the Kisan credit is normally given for the cropping requirement, for the farm inputs and all. So there, if the crop is not there, then there is a loss to farmers. So in that case we defer those payments. It is declared from the State Level Bankers Committee depending upon the district-level technical committee recommendation, and then we defer those charges. So whenever customers, farmers are comfortable, then they will pay it back.
Interviewer 1:50 ↗
So does that show up in your NPA?
Brajesh Singh 1:54 ↗
No, it will not go to NPA since it will not be degraded as of now. So it will not go directly to the NPA.
Interviewer 2:02 ↗
Okay. So how will it show up in your P&L, sir?
Brajesh Singh 2:06 ↗
So once it is not declared into NPA, so there is no effect on P&L also.
Interviewer 2:11 ↗
Okay.
Brajesh Singh 2:11 ↗
Then only we'll have to provide. If it is degraded, then only we'll have to provide. So it is deferred.
Interviewer 2:16 ↗
It's just deferred for now.
Brajesh Singh 2:17 ↗
Due to this thing. Now the districts, those very districts are declared as the distress districts. In that case banks give them that dispensation there.
Interviewer 2:26 ↗
On the IRDAI draft paper, you all have done — you must have done the analysis. Now what is the fee income that you'll depend on from insurance, and on account of the proposals, if they're codified into law, what will be the impact?
Brajesh Singh 2:42 ↗
We are having our captive business, Canara HSBC Life Insurance. So already we are using our good number of branches — 10,131 — and we are earning good, I mean, as agency commission also. So we are a regular player in this market. Bank assurance is a regular feature. So yes, we will be benefited out of it also, and that distribution process will be more refined and more regulated, I would say.
Interviewer 3:12 ↗
Okay. All right. Hi, sir. Good morning and good to see you. Mr. Singh, you know, the MDR — you know, now we have some kind of a framework that is in place. I wanted your view on it. You know, 40 bps is what has been, you know, the number that's come out, and out of that banks get a larger proportion. I understand that for the banking industry it could be anything in the vicinity of around 17,000 to around 20,000 crores. Help us out with what will your share be as of now, and is it a little better than what you all were expecting?
Brajesh Singh 3:46 ↗
Oh, there will be some sharing out of that, whatever the collection would be there, but that will be not much considering our size. Considering 96% of the UPI transactions are below 2,000 rupees, so there will be hardly any charges there. And there are some specific like fuel charges, insurance premium, utility bill connection, railway tickets — those type of things again there will be a flat charge of rupees five only. So that means there will be not much on the earning side for a bank like us. And again that 40 bps is distributed amongst the acquirer bank, issuer bank, the payment service providers, and then PFs also. So a very meager amount comes. But yes, 300–400 crore rupees here and there as of now we are paying as switch fees or interchange fees. So somewhere that will be recouped, but that will be not much considering the size of the bank, wherein last year we could make a profit of 19,000 crore net profit after tax.
Interviewer 4:58 ↗
So because of the MDR that will be levied, have you done any rough math? You're saying that it'll be very, very small for you all, there are exemptions as well as you rightly pointed out, but have you done any rough math in terms of what kind of revenue could come in for a bank like yours?

19 more exchanges in this transcript

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Cite this transcript

APA, MLA, BibTeX
APA

Singh, B. (2026, October 1). MDR Fee On UPI | Currently Paying ₹300-400 Cr Fess & That Could See An Impact: Canara Bank [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/2960348/

MLA

Brajesh Singh. "MDR Fee On UPI | Currently Paying ₹300-400 Cr Fess & That Could See An Impact: Canara Bank." CNBC-TV18, 1 Oct. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/2960348/.

BibTeX 
@misc{singh2026_2960348,
  author       = {Brajesh Singh},
  title        = {MDR Fee On UPI | Currently Paying ₹300-400 Cr Fess \& That Could See An Impact: Canara Bank},
  howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
  year         = {2026},
  month        = {oct},
  url          = {https://ceointerviews.ai/interview/2960348/},
  note         = {Speaker-attributed transcript with timestamps}
}