State Bank of India (SBI) expects the new merchant discount rate (MDR) framework for UPI transactions to help it recover most of the costs associated with processing such payments and also generate a modest surplus, a senior bank official said. “From the MDR guidelines, we expect to recover most of it and also make some profits out of it,” the official said. The development could provide some relief to banks that have seen UPI transaction volumes surge even as the zero-MDR regime limited their ability to recover the costs of processing merchant payments.