New Delhi, Sept. 16 -- The National Payments Corporation of India (NPCI) has introduced a new Merchant Discount Rate (MDR) framework for select UPI transactions, effective 15 October 2026. While the move introduces a 0.4% charge on specified merchant transactions above Rs.2,000, NPCI has clarified that consumers will not be charged for making UPI payments.

NPCI stated in the FAQs released with the circular that UPI apps will not charge a platform fee, consumers will not face monthly limits on free UPI transactions and merchants cannot pass the MDR on to buyers.

Here is what the new framework means for consumers.

No. NPCI clearly said consumers will not be charged for scanning a QR code and making a UPI payment. This applies to QR payme...