{"id":1313891,"date":"2026-09-16T07:39:23","date_gmt":"2026-09-16T02:09:23","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1313891"},"modified":"2026-09-16T07:39:36","modified_gmt":"2026-09-16T02:09:36","slug":"upi-charges-from-october-15-who-will-pay-the-0-4-mdr","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/upi-charges-from-october-15-who-will-pay-the-0-4-mdr\/","title":{"rendered":"UPI Charges From October 15: Who Will Pay the 0.4% MDR?"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>India&#8217;s UPI payment system is set for a major change from <strong>October 15, 2026<\/strong>, with a new Merchant Discount Rate (MDR) applying to certain high-value payments made to merchants. However, the change does <strong>not mean consumers will suddenly be charged for using UPI<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"812\" height=\"377\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/09\/images-32.jpeg\" alt=\"UPI Charges From October 15: Who Will Pay the 0.4% MDR?\" class=\"wp-image-1313898\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/09\/images-32.jpeg 812w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/09\/images-32-300x139.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/09\/images-32-768x357.jpeg 768w\" sizes=\"auto, (max-width: 812px) 100vw, 812px\" \/><\/figure>\n\n\n\n<p>The new framework introduces an MDR of up to <strong><a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/policy\/upi-charges-from-october-15-faqs-on-who-will-pay-0-4-mdr-and-what-consumers-small-vendors-large-merchants-need-to-know\/articleshow\/134266293.cms?from=mdr\">0.4% <\/a>on eligible person-to-merchant (P2M) transactions above \u20b92,000<\/strong>, while person-to-person payments will continue to remain free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Will Consumers Pay a UPI Fee?<\/h2>\n\n\n\n<p><strong>No.<\/strong> Consumers will continue to make UPI payments without a transaction charge. The MDR is a merchant-side processing fee and is not supposed to be added to the customer&#8217;s bill.<\/p>\n\n\n\n<p>Person-to-person transfers, including sending money to family or friends, will remain free regardless of the amount involved.<\/p>\n\n\n\n<p>UPI payments to merchants of <strong>\u20b92,000 or less<\/strong> will also remain free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Happens to Payments Above \u20b92,000?<\/h2>\n\n\n\n<p>For eligible merchant transactions above \u20b92,000, the standard MDR will be <strong>0.4%<\/strong>, with a maximum cap of <strong>\u20b9300 per transaction<\/strong>.<\/p>\n\n\n\n<p>For example, a \u20b93,000 payment would result in \u20b912 of MDR, while a \u20b950,000 payment would attract \u20b9200. For a \u20b91 lakh transaction, the normal 0.4% calculation would be \u20b9400, but the \u20b9300 cap would apply.<\/p>\n\n\n\n<p>The new framework is expected to leave around <strong>96% of P2M transactions unaffected<\/strong>, according to the FAQ.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Small Vendors Will Remain Exempt<\/h2>\n\n\n\n<p>Small merchants operating under the <strong>P2PM framework<\/strong> will continue to benefit from zero MDR. This category covers eligible small vendors receiving up to \u20b91 lakh a month through UPI QR payments<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s UPI payment system is set for a major change from October 15, 2026, with a new Merchant Discount Rate (MDR) applying to certain high-value payments made to merchants. However, the change does not mean consumers will suddenly be charged for using UPI. The new framework introduces an MDR of up to 0.4% on eligible [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1313898,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10566,7418,41],"class_list":["post-1313891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-charges","tag-mdr","tag-upi"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UPI Charges From October 15: Who Will Pay the 0.4% MDR? - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/upi-charges-from-october-15-who-will-pay-the-0-4-mdr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UPI Charges From October 15: Who Will Pay the 0.4% MDR? - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"India&#8217;s UPI payment system is set for a major change from October 15, 2026, with a new Merchant Discount Rate (MDR) applying to certain high-value payments made to merchants. 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