UPI MDR: What it means for consumers?
In India, the use of UPI for payments is now as commonplace as using a physical wallet. On October 15, 2026, the National Payments Corporation of India (NPCI) is set to implement a revised Merchant Discount Rate (MDR) framework, six years after UPI transactions became free for merchants. This fee introduces a 0.4% charge on eligible person-to-merchant payments exceeding Rs 2,000. While customers are expected to pay nothing, the real question lies in whether this fee remains nominal at the point of sale.
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