New Delhi, Sept. 24 -- With UPI MDR set to apply from 15 October 2026, the charge will not only apply to spending transactions but also to certain loan repayments and EMI collections.

However, the MDR will be levied on the merchant side and not directly on borrowers. For debt collection transactions, including loan repayments and EMI collections, UPI payments above Rs.2,000 will attract a flat MDR of Rs.5 per transaction.

Here's what you need to know.

Mukesh Pandey, Founder and MD, Rupyaapaisa.com said the Rs.5 MDR applies only to UPI transactions of Rs.2,000 and above that fall under debt collection, including repayments of loans taken from NBFCs and other financing sources.

For example, if a borrower repays an EMI of Rs.5,000 or a l...