India to impose 0.4% MDR on some UPI merchant payments from Oct. 15, 2026
In short
India will start charging a 0.4% MDR on some UPI merchant payments above ₹2,000 from 15 October 2026. The fee is capped at ₹300 for payments of ₹75,000 and above.
Regular users and person-to-person UPI transfers will still be free. The reporting does not say which merchant transactions are included beyond the threshold.
What the reporting says
India will impose a 0.4% merchant discount rate on specified UPI merchant transactions above ₹2,000 from 15 October 2026, according to the publisher-supplied summary. The charge is capped at ₹300 for transactions of ₹75,000 and above, while consumer and peer-to-peer payments stay free. The reporting does not explain which merchant categories qualify beyond the stated threshold.
Why it matters
India will add a 0.4% MDR to certain UPI merchant transactions above ₹2,000 from 15 October 2026, with a ₹300 cap for payments of ₹75,000 and above. The change affects merchants using UPI, while consumers and P2P transfers remain exempt. The source says India’s model differs from fee structures in other countries, but it does not specify the policy rationale or which merchant segments are covered.