Government considers MDR on UPI transactions above ₹2,000 for funding

Business Sep 15, 2026

UPI remains free for payments up to ₹2,000, but the government is now considering a small charge (called MDR) on bigger transactions.

This move is meant to help fund the growing UPI system as digital payments keep rising.

Higher UPI payments could affect pricing

If this fee kicks in, you can still use UPI for everyday stuff without paying extra.

For pricier purchases, shops might have to cover the new cost or could pass it on by tweaking their prices.

So while you won't see an immediate change, it could eventually shape how both shoppers and businesses use digital payments.