India Introduces UPI MDR Regime For Merchants Starting October 15

15 Sept 2026, 10:06 pm · 17h ago · 1 min read · Inc42

India will roll out a revised Merchant Discount Rate framework for Unified Payments Interface transactions starting October 15. The new structure imposes a 0.4% MDR on regular person-to-merchant UPI payments exceeding ₹2,000, with fees capped at ₹300 for transactions of ₹75,000 and above. Consumer peer-to-peer transactions will remain free, and small merchants retain zero-MDR protections. The regulatory update aims to establish a commercially sustainable model for payment aggregators and banking infrastructure while maintaining broad digital transaction adoption across Tier III and Tier IV markets.