Brief by Shorts91 Newsdesk / 04:09pm on 15 Sep 2026,Tuesday India
The government has announced a new Merchant Discount Rate (MDR) framework for select UPI transactions, under which merchants will pay a fee on person-to-merchant (P2M) payments above Rs 2,000, while consumers will continue to use UPI free of charge. The new framework will take effect from October 15, 2026. Under the standard P2M structure, a 0.4% MDR will apply to UPI transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction. The charge will be paid by merchants to acquiring banks and cannot be passed on to customers. Thus, consumers will not bear the fee directly when making UPI payments. (PC: Getty Images)
