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🚨 UPI is NO LONGER completely free for merchants! 💸🇮🇳
A new Merchant Discount Rate (MDR) of 0.40% will apply to eligible UPI merchant transactions above ₹2,000 from October 15, 2026. 👀
💰 MDR: 0.40% / 40 bps
🔝 Maximum fee: ₹300 per transaction
💸 ₹75,000 transaction → ₹300 MDR
📈 Above ₹75,000 → Still capped at ₹300
📌 What stays free?
👤 Person-to-person UPI transfers
🔄 Recurring payments
🏪 Qualifying small merchants receiving up to ₹1 lakh/month
🚆 Railways, telecom, insurance & fuel payments above ₹2,000 will reportedly attract a flat ₹5 fee.
📈 Capital-market transactions → 0.02% MDR, capped at ₹300.
Example:
₹3,000→ ₹12 MDR
₹50,000→ ₹200 MDR
₹75,000+→ ₹300 MDR
⚠️ The MDR is charged to merchants, not customers, and merchants cannot add it as a separate UPI surcharge.
UPI processed a massive 24.51 billion transactions worth ₹29.9 trillion in August alone.
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