NPCI to introduce 0.4% MDR on UPI payments above ₹2,000
Business
Heads up: If you use UPI to pay more than 2,000 rupees at stores or online, a 0.4% merchant discount rate (MDR) fee is set to be introduced.
The NPCI says this change is needed to keep digital payments running smoothly, since handling billions of transactions every month isn't cheap.
UPI payments under ₹2,000 still free
Don't worry, sending money to friends or paying up to 2,000 rupees remains free.
With UPI hitting record highs (24.51 billion transactions in August 2026), the costs for security and technology have shot up.
Earlier government support wasn't enough, so this new fee helps keep the system strong for the long run while still letting most people pay without extra charges.