Question 1

Will UPI customers be charged the MDR?

Accepted Answer

No. MDR is a merchant-side charge deducted from the merchant payout. Consumers never pay a fee for UPI payments, and merchants cannot pass the charge on to customers.

Question 2

Which UPI payments attract MDR from 15 October 2026?

Accepted Answer

Only Person-to-Merchant (P2M) UPI payments above ₹2,000 attract the 0.4% MDR (capped at ₹300). Payments up to ₹2,000, all P2P transfers, and small merchants under the P2PM framework receiving up to ₹1 lakh/month via QR remain free.

Question 3

Are all sectors charged 0.4%?

Accepted Answer

No. Railways, telecom, insurance, fuel and agricultural inputs pay a flat ₹5 per transaction above ₹2,000, while mutual funds, securities and stockbroker payments pay just 0.02% (capped at ₹300).

UPI MDR Calculator (From 15 October 2026)