banner-logo

All you need to know

  • What is new?

    From 15 October 2026, a new Merchant Discount Rate (MDR) framework will apply to certain UPI payments made to merchants.

    The most important thing for you as a customer:  

    - UPI continues to remain free for you as customer.

    - MDR is a merchant-side charge and should not be added to the amount which you (as customer) pay through UPI.

  • At a glance

    No MDR for customers: You do not pay MDR when while making a UPI payment.

    MDR applies only to certain merchant payments: For applicable merchant transactions above ₹2,000, the standard MDR rate is 0.4%, subject to applicable categories, concessions and caps.

    No change in how you pay: You do not need to change your UPI app, linked bank account, QR code or the way you make UPI payments.

    For you as a customer, nothing changes in the way you use UPI. Continue to scan, pay and transfer money as usual, without paying MDR.

Frequently Asked Questions

No. The ₹2,000 limit is relevant only for merchants. It determines when a merchant may need to bear MDR on UPI transactions above ₹2,000. As a customer, you will not be charged MDR for using UPI, whether your payment is ₹200, ₹2,000 or ₹20,000.

 

Yes. Person-to-Person (P2P) UPI transfers continue to be free, so you can keep sending money to family and friends or even move funds between your own linked accounts at no cost. Nothing changes for your everyday UPI usage.

 

The ₹2,000 limit is relevant only for merchants, as it determines when they may need to bear MDR for UPI payments above ₹2,000. As a customer, you will not be charged MDR for UPI payments, whether the amount is below or above ₹2,000.
 

Your payment experience stays the same, i.e., no MDR or UPI transaction fee for you.

 

No. The ₹2,000 limit is relevant only for merchants. It determines when a merchant may need to bear MDR on UPI transactions above ₹2,000. As a customer, you will not be charged MDR for using UPI, whether your payment is ₹200, ₹2,000 or ₹20,000.
 

So, for you as a customer, the experience stays the same: no additional MDR or UPI transaction fee.

 

No. MDR on UPI payments made using a RuPay Credit Card linked to UPI or a pre-sanctioned credit line is not affected via the latest MDR communication. It is applicable only for bank account based UPI transactions as mentioned in Gazette Notification No. CG-DL-E-14092026-276170 dated 14th September 2026.

No. You do not need to change anything about the way you use UPI. Continue using your existing UPI app, linked bank account and QR codes just as you do today.
 

For example, if you currently scan a shopkeeper’s QR code and pay through your preferred UPI app, simply continue paying the same way. Nothing changes for you.
 

Same UPI, same app, same way of paying. No action is needed from you.