From October 15 DFS applies 0.4% MDR to UPI P2M
From October 15, 2026, select UPI person-to-merchant (P2M) transactions above ₹2,000 will attract a new Merchant Discount Rate (MDR) of 0.4%, capped at ₹300 for transactions of ₹75,000 and above.
The good news? This fee is only for merchants. Consumers won't pay anything extra.
The Department of Financial Services (DFS) has made it clear that you can keep using UPI as usual without worrying about surprise charges.
DFS says consumers pay posted price
DFS reassures everyone that festive shopping, like Diwali and Dhanteras, won't get pricier because of this change.
Consumers will pay only the posted price for goods and services, an official shared.
Plus, small shops earning up to ₹1 lakh per month through UPI don't have to pay the MDR either, so your local favorites are safe from extra costs too.