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A revised Merchant Discount Rate framework for eligible person-to-merchant UPI transactions above ₹2,000 will take effect on October 15, 2026, according to the Department of Financial Services FAQ dated September 15.
The baseline MDR is 0.4%, capped at ₹300 for transactions of ₹75,000 or more. Person-to-person transfers remain free, UPI payments up to ₹2,000 are unaffected, and qualifying small P2PM merchants receiving up to ₹1 lakh a month through UPI QR remain at zero MDR.
The charge is within the merchant-side payments ecosystem, not a new direct fee on ordinary consumers. Banks have been advised not to pass the charge to customers.
Sources: Department of Financial Services FAQ | The Indian Express | The Hindu | PIB
UdaipurMirror editorial note: This post uses original wording and an illustrative image.
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