New Delhi, Oct. 4 -- The Unified Payments Interface (UPI) is set to see a change in the way certain merchant transactions are charged from 15 October 2026.

An MDR (Merchant Discount Rate) of 0.4% will apply to eligible P2M UPI payments above Rs.2,000. However, this is a charge on the merchant side and not a fee that customers will have to pay for making a UPI payment.

According to the FAQs issued by the National Payments Corporation of India (NPCI) on 15 September 2026, the revised framework has different provisions for regular commercial merchants, small vendors, and certain sectors. Here's what you need to know.

No. UPI P2M transactions of up to Rs.2,000 will continue to remain outside the MDR framework.

According to the Ministry of...