Govt Ends Zero-MDR Regime with 0.4% Fee on High-Value UPI Transactions

16 Sept 2026, 7:30 am · 12h ago · 1 min read · YourStory

The Indian government has rolled out a revised framework for UPI payments, ending the zero-MDR regime active since January 2020. Under the new policy, a 0.4% merchant discount rate applies to UPI merchant transactions exceeding Rs 2,000, capped at Rs 300 for payments of Rs 75,000 and above. Peer-to-peer transfers and transactions under Rs 2,000 remain entirely free for consumers. Concurrently, Amazon Now quick commerce expanded to over 60 Indian cities, achieving $1 billion in annualized gross sales. Separately, the government announced plans to match venture capital investments in domestic semiconductor startups.