India, Sept. 16 -- The NPCI has introduced an updated Merchant Discount Rate (MDR) framework for certain UPI transactions, which shall come into force from October 15, 2026. Meanwhile, consumers can use the UPI without paying any transaction fees.

According to the updated framework, P2M UPI transactions above Rs 2,000 will be subject to 0.4% MDR while for transactions above Rs 75,000, the MDR will be limited to Rs 300. It is important to note that the MDR will be paid by merchants. Consumers will not have to pay MDR while P2P UPI transactions will be exempted from MDR.

When Will The New UPI MDR Rules Come Into Effect?

The new UPI MDR structure will come into force on October 15, 2026. These changes will be made by banks, payment aggreg...