NPCI to levy 0.4% MDR on UPI payments above ₹2,000
UPI payments over ₹2,000 are about to get a bit more expensive for merchants.
Starting October 15, 2026, the National Payments Corporation of India (NPCI) will charge a 0.4% Merchant Discount Rate (MDR) on these higher-value transactions.
If you're paying less than ₹2,000 or just sending money to friends, you won't see any extra fees.
P2pm merchants up to ₹1L exempt
Small merchants receiving up to ₹1 lakh per month via UPI QR codes under the Person-to-Person Merchant (P2PM) classification don't have to worry: the MDR won't apply to them.
Sectors like railways and telecom will see a flat ₹5 fee for payments above ₹2,000 (capped at ₹300 for really large payments).
The Ministry of Finance says only about 4% of merchant transactions will be impacted overall, so most everyday users won't notice much change.