UPI MDR explained: Will customers be charged from October 15?

New Delhi, Sept. 16 -- New rules governing the Merchant Discount Rate (MDR) on certain UPI transactions have raised concerns among users over whether digital payments will become chargeable from October 15, 2026. However, the new framework does not impose any direct charges on consumers for making UPI payments.

The MDR is a fee linked to the merchant side of a digital transaction. It is paid within the payment ecosystem and does not mean that money will be deducted from a customer's bank account when they make a UPI payment.

Person-to-person (P2P) UPI transactions will continue to remain free. Merchant payments of up to Rs 2,000 will also not attract MDR. According to the government, these exemptions mean that around 96 per cent of mercha...