India will introduce Merchant Discount Rate fees on person-to-merchant UPI transactions above ₹2,000 starting October 15, 2026, per NPCI. A flat ₹5 applies to essential sectors like railways and fuel, while others pay 0.4%, capped at ₹300. Small merchants and 95% of low-value transactions remain exempt.
UPI MDR Fees to Start October 15 on Select Transactions
Source: Mint