New Delhi, Sept. 17 -- Ordinary customers will continue using UPI without paying merchant processing fees under the revised framework. The rules take effect on 15 October 2026, with exemptions covering several everyday transactions.

The merchant discount rate (MDR) is a fee linked to accepting digital payments. Customers paying businesses will not bear this charge, according to the Finance Ministry. Here are 5 situations where MDR does not apply.

Personal transfers remain free, regardless of the amount sent. This includes sending money to parents, helping relatives or settling everyday expenses with friends.

These are called person-to-person transfers because money moves directly between individuals. The revised merchant fee rules do n...