UPI merchant charges

NPCI released UPI MDR
Legislation UpdatesNotifications

NPCI has released FAQs clarifying that a 0.4% MDR will apply to specified UPI Person-to-Merchant (P2M) transactions above ₹2,000 from 15 October 2026, while keeping UPI payments for consumers, P2P transfers, and most small value merchant transactions free.

No Charges for UPI Users
Legislation UpdatesNotifications

Government has clarified that UPI will remain free for consumers and person-to-person transactions, while any future Merchant Discount Rate (MDR), if introduced, will be limited, threshold-based and applicable only to certain merchant transactions.