UPI merchant fee rollout scheduled for October 15 may be pushed to January: Report
Under the new MDR framework, merchants accepting UPI payments above ₹2,000 would have to pay a fee of 0.4% of the transaction value.
The government is considering delaying the implementation of the Merchant Discount Rate (MDR) on large payments via the Unified Payments Interface (UPI) by a few months, according to Reuters. The fee, which was initially scheduled to be introduced on October 15, may now be implemented from January. This change comes after Parliament cleared the Taxation and Other Laws (Amendment) Bill, 2026 on August 11, granting the government the authority to levy charges on specific digital payment modes.
The new MDR framework will charge 0.4% of the transaction value for UPI payments above ₹2,000, with certain categories exempted from the fee, including person-to-person transfers and payments to merchants under certain thresholds.
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