Merchants to bear 0.4% UPI MDR from October 15 2026
Business
From October 15, 2026, a 0.4% Merchant Discount Rate (MDR) will apply, borne by merchants, on specified person-to-merchant UPI transactions above ₹2,000.
This ends the current zero-fee system for big transactions, with a cap of ₹300 if the transaction is ₹75,000 and above.
Nykaa and Lenskart to absorb fees
Retailers like Nykaa and Lenskart will have to absorb these costs. They can't pass them on to customers.
Sectors with pricier purchases, like jewelry and electronics, will feel this most.
Food delivery apps like Zomato and Swiggy probably won't notice much change since their orders are usually smaller.
To cope, businesses may look for new ways to save money or tweak how they handle payments.