Reports of “UPI charges” have sparked concern among users, but the latest notification makes one thing clear:
UPI stays free for users. UPI transactions up to ₹2,000 and RuPay debit card payments remain free of charge. From 15 October 2026, a 0.4% MDR (capped at ₹300) will apply only to certain merchant UPI payments above ₹2,000. The charge is payable by eligible merchants, not customers, and small merchants remain exempt.
