{
  "id": 7604089,
  "title": "Introduction Of MDR On Large Value Transactions To Strengthen UPI's Long-Term Sustainability: RBI",
  "url": "https://urgent.news/2026/09/15/introduction-of-mdr-on-large-value-transactions-to-strengthen-upis",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T17:55:35.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/introduction-of-mdr-on-large-value-transactions-to-strengthen-upis-long-term-sustainability-rbi"
  },
  "original_language": "en",
  "account": "On September 15, 2026, the Reserve Bank of India announced the introduction of a Merchant Discount Rate (MDR) on large-value UPI transactions to bolster the long-term viability of India's digital payments system. The RBI explained that this 0.4% fee, applicable to transfers over Rs 2,000 made to merchants via UPI, would commence on October 15. However, the finance ministry clarified that this charge would not impact everyday person-to-person transactions or small payments, which remain exempt from the MDR. The RBI emphasized that UPI transactions, including both person-to-person (P2P) and person-to-merchant (P2M), would continue to be free for users. P2M UPI transactions under Rs 2,000 would still be free for merchants. The MDR aims to encourage ongoing investment in technology, infrastructure, and acceptance networks, thereby supporting wider UPI adoption, expanding the customer base, and sustaining growth in transaction volumes. This move underscores the RBI's commitment to maintaining UPI's safety, convenience, affordability, and accessibility while fostering the long-term expansion and advancement of India's globally recognized digital payment platform. UPI, launched in August 2016, has experienced remarkable growth, with transaction value soaring from Rs 0.07 lakh crore in FY17 to approximately Rs 314 lakh crore in FY26, marking an astonishing 4,000-fold increase over a decade.",
  "summary": "Mumbai, September 15, 2026: The introduction of Merchant Discount Rate (MDR) on large-value UPI transactions is an important step towards strengthening the long-term sustainability of India's digital payments ecosystem, the Reserve Bank said on Tuesday following a proposal to levy a 0.4 per cent fee on transactions exceeding Rs 2,000. \"It will help UPI in continuing to scale, innovate and serve…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}