New Delhi, Sept. 15 -- The National Payments Council of India (NPCI) today announced merchant discount rate (MDR) on select unified payments interface (UPI) transactions conducted from person to merchant, effective from next month. "A revised UPI MDR framework has been introduced on select merchant transactions, effective from 15 October 2026, while keeping UPI free for consumers," it added.

The statement dated 15 September said that MDR of 0.4% will be applicable on P2M UPI transactions above Rs.2,000, capped at Rs.300 per transaction. Further, it keeps 95% of low value UPI transactions below Rs.2,000 and small merchant transactions (P2PM) completely free and proposes a new fund to support the expansion of UPI acceptance among small mer...