UPI charges from October 15: FAQs on who will pay 0.4% MDR and what consumers, small vendors & large merchants need to know
The new UPI framework will continue to keep person-to-person (P2P) transactions free, irrespective of the amount transferred. Payments made to merchants up to Rs 2,000 will also remain free, while a new Merchant Discount Rate (MDR) will apply to specified person-to-merchant (P2M) transactions above Rs 2,000.
According to the FAQ released on September 15, around 96% of P2M transactions will remain unaffected by the new framework. The revised MDR provisions will come into effect from October 15, 2026.
