New Delhi, Sept. 17 -- The UPI Merchant Discount Rate (MDR) framework will take effect from 15 October 2026, with a 0.40% MDR applying to Person-to-Merchant (P2M) UPI transactions above Rs.2,000 for standard merchants.

However, the rate varies based on the transaction value, merchant category, and type of payment.

According to a Motilal Oswal Financial Services' Morning India report released on Thursday, UPI processed Rs.29.82 lakh crore worth of transactions in August 2026. P2P transactions accounted for 30% of the total value, while P2M transactions made up the remaining 70%.

MDR is a fee charged for accepting digital payments and is paid by the merchant, not directly by the consumer. Here's what you need to know.

P2P or person-to-p...