UPI AutoPay: OTT, SIP and bill payments may face new charges under revised MDR rules

The Reserve Bank of India's revised Merchant Discount Rate (MDR) framework has excluded UPI AutoPay transactions for over-the-top (OTT) subscriptions, systematic investment plans (SIPs) and bill payments from its prescribed rate structure.

This exclusion means service providers may now impose additional charges on these recurring payment categories, as they fall outside the regulated MDR ceiling. Users of OTT platforms, mutual fund SIPs and utilities may face higher transaction costs compared to other UPI payment modes.

The new rules apply to recurring autopay transactions that were previously subject to standardised MDR norms, potentially altering the cost dynamics for consumers relying on automated payment methods.