India sets 0.4% MDR on P2M UPI from October 15
Starting October 15, specified person-to-merchant (P2M) UPI transactions above ₹2,000 will come with a 0.4% fee (MDR), with separate rates for certain essential sectors and some capital-market transactions, but don't worry, it's capped at ₹300 for transactions of ₹75,000 and above, and anything up to ₹2,000 stays free.
The government says this move is to keep merchants bearing the charges and consumers not being charged.
Railways telecom ₹5 MDR, RuPay exempt
Sectors like railways and telecom will also see a flat ₹5 MDR on merchant payments above ₹2,000.
If you use a RuPay debit card, though, you're in the clear: those transactions remain free.
Officials emphasized that these changes are about strengthening India's own payment networks and supporting local companies, not because of outside pressure.