India to levy MDR on merchant UPI payments over ₹2,000
Big change coming to digital payments: starting October 15, 2026, the government will charge merchants a fee (called MDR) on certain merchant UPI transactions over ₹2,000.
Don't worry if you're just sending money to friends or shopping small; UPI stays free for regular users.
The idea is to help cover costs without affecting everyday consumers.
Payments industry split over MDR fee
Not everyone's happy about it. former BharatPe co-founder Ashneer Grover called the new fee a "tax" and questioned why it's needed when RBI already has a surplus.
But others like MobiKwik's Upasana Taku say it's necessary to keep up with rising infrastructure costs, and PhonePe's Sameer Nigam points out that India was the only country not charging these fees until now.
The debate shows just how much India's digital payment scene is evolving.