New Delhi, Sept. 16 -- From 15 October, selected UPI payments above Rs.2,000 will attract MDR. But recurring payments through UPI AutoPay and mandates are treated differently, while mutual fund and other capital-market payments have a separate lower rate.

UPI users will see a new merchant discount rate (MDR) framework from 15 October 2026, but the change does not mean that every payment above Rs.2,000 will become chargeable. The new framework applies to specified person-to-merchant (P2M) transactions, while customers themselves will not be charged MDR.

This distinction is particularly important for people who use UPI to pay mutual fund SIPs, insurance premiums, utility bills and OTT subscriptions. The payment mechanism matters, not just...