NPCI Sets 0.4% MDR on UPI Above Rs 2,000, Caps Fee at Rs 300

India's NPCI will introduce a 0.4% Merchant Discount Rate on P2M UPI transactions above Rs 2,000 from October 15, 2026. For payments of Rs 75,000 and higher, the fee is capped at Rs 300 per transaction. Merchants bear the cost; UPI remains free for users.

• 0.4% MDR applies to P2M UPI payments above Rs 2,000
• For transactions of Rs 75,000 and above, fee capped at Rs 300
• Payments up to Rs 2,000, over 95% of volume, stay free
• Railways, telecom, insurance and fuel have a flat Rs 5 per transaction