Mumbai, Sept. 15 -- UPI transactions above Rs 2,000 will attract a Merchant Discount Rate (MDR) of 0.4 per cent under a revised framework introduced by the National Payments Corporation of India (NPCI), while consumers will continue to transact free of cost using UPI.

The revised UPI Merchant Discount Rate framework will come into effect from October 15, 2026, and will apply to select merchant transactions.

Under the new framework, an MDR of 0.4 per cent will apply to Person-to-Merchant (P2M) UPI transactions above Rs 2,000, with the MDR capped at Rs 300 per transaction.

For instance, a 0.4 per cent MDR on a Rs 2,000 transaction works out to Rs 8. However, the charge is part of the merchant-side MDR framework and the statement said con...