Brief by Shorts91 Newsdesk / 05:58am on 16 Sep 2026,Wednesday India
The National Payments Corporation of India (NPCI) will introduce a Merchant Discount Rate (MDR) on selected UPI transactions from October 15, 2026. A 0.4% charge will apply to person-to-merchant (P2M) UPI payments above ₹2,000, capped at ₹300 per transaction. Payments involving railways, telecom, insurance and fuel will attract a flat ₹5 MDR above ₹2,000. Person-to-person (P2P) transfers and merchant payments up to ₹2,000 will remain free. Small merchants receiving up to ₹1 lakh monthly through UPI QR codes are also exempt. The MDR is intended to support the sustainability and infrastructure of India’s digital-payment ecosystem.
