NPCI Introduces 0.4% MDR on UPI Transactions Above Rs 2,000

15 Sept 2026, 7:33 pm · 20h ago · 1 min read · Entrackr

The National Payments Corporation of India (NPCI) has introduced a 0.4% Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions exceeding Rs 2,000, effective October 15, 2026. For transactions of Rs 75,000 and above, the MDR is capped at Rs 300 per transaction. Transactions under Rs 2,000, which represent over 95% of P2M volumes, remain free of MDR. Consumers will not be charged any fees. Certain categories like railways, fuel, and telecom will incur a flat Rs 5 fee, while small vendors receiving under Rs 1 lakh monthly remain exempt.