India will levy 0.4% UPI MDR abroad over ₹2,000
Business
Heads up if you use UPI while traveling!
From October 15, 2026, the Indian government is bringing in a 0.4% Merchant Discount Rate (MDR) on UPI payments over ₹2,000 at shops and businesses in 11 countries, including the UAE, France, Singapore, and more.
This means the 0.4% MDR applies to eligible merchant transactions above ₹2,000, while consumers will not be charged for UPI payments.
Person-to-person and under ₹2,000 free
No need to worry about everyday transfers: person-to-person payments and transactions under ₹2,000 are still free from this new fee.
The Finance Ministry says this update helps keep the UPI system sustainable, moving away from the old zero-fee model.
The MDR rates were set after discussions with banks and other stakeholders.