UPI MDR: Complete Charge Structure (Effective Oct 15, 2026)

What Happened

The National Payments Corporation of India (NPCI) has introduced a new Merchant Discount Rate (MDR) framework for UPI merchant payments above ₹2,000. The charges apply to merchants, not customers, and vary by transaction category. Below is the summary of charges UPI Merchant (P2M) payments up to ₹2,000 0% (Free) Regular merchant payments above ₹2,000 0.4%, capped at ₹300 per transaction Railways payments above ₹2,000 ₹5 flat fee Telecom payments above ₹2,000 ₹5 flat fee Insurance payments above ₹2,000 ₹5 flat fee Fuel payments above ₹2,000 ₹5 flat fee Utility payments (electricity, water, gas, etc.) above ₹2,000 ₹5 flat fee Agriculture input payments above ₹2,000 ₹5 flat fee Capital market transactions (stocks, mutual funds, brokers, securities) Examples ₹3,000 merchant purchase → MDR = ₹12 (0.4%). ₹50,000 merchant purchase → MDR = ₹200. ₹1 lakh merchant purchase → MDR capped at ₹300. ₹10,000 railway ticket payment → MDR = ₹5 flat. ₹1 lakh mutual fund purchase via UPI → MDR = ₹20 (0.02%). Important: Customers will continue to pay only the listed price. The MDR is charged to merchants and, under the framework, cannot be passed on to consumers.