UPI charges from October 15: New 0.4% MDR on merchant payments above Rs 2,000
The National Payments Corporation of India will introduce a new Merchant Discount Rate (MDR) structure effective October 15, 2026. UPI transactions up to Rs 2,000 will continue to be free for all users.
The 0.4% MDR will apply to specified merchant payments exceeding Rs 2,000. Most person-to-merchant transactions are expected to remain unaffected by the changes. The revised framework aims to support investment in UPI infrastructure, innovation and cybersecurity initiatives.
