UPI charges,
without the confusion.
The new UPI transaction charges, the ₹2,000 rule, MDR and daily limits — explained in simple language.
Latest UPI update
Reported0.4%
MDR on specified merchant UPI payments above ₹2,000
₹2,000
Threshold
₹300
Maximum MDR
- Starts October 15, 2026
- Consumers and P2P transfers remain free
Quick facts
The whole change in four numbers
Everything the headlines get wrong, on one card.
₹2,000
Threshold
Merchant payments above this
0.4%
MDR rate
Paid by the merchant, not you
₹300
Maximum MDR
Cap for ₹75,000+ payments
Oct 15
Effective date
2026, as reported
Good to know
- Person-to-person (P2P) transfers stay free.
- Consumers are not directly charged for UPI payments.
- MDR applies only to specified person-to-merchant (P2M) transactions.
Calculator
See the MDR on any payment
Drag the slider or type an amount. Consumers always pay ₹0 extra.
Estimated MDR
₹40
Paid by the merchant. The customer is not charged.
- Transaction amount
- ₹10,000
- MDR rate
- 0.4%
- Merchant receives
- ₹9,960
- Customer pays extra
- ₹0
Informational only. Actual fees depend on transaction category, applicable NPCI rules and merchant/payment-provider arrangements.
Timeline
What changed?
How UPI merchant charges moved from zero to the new framework.
- 1
Before
Zero-MDR regime
UPI merchant payments largely operated without a merchant discount rate since January 2020.
- 2
September 2026
New framework announced
NPCI outlines a 0.4% MDR for specified P2M transactions above ₹2,000, capped at ₹300.
- 3
October 15, 2026
Implementation
Specified merchant transactions above ₹2,000 become subject to MDR. P2P remains free.
- 4
Going forward
Review and updates
The framework can be reviewed and revised. Every official change will be tracked here.
News
Latest UPI news
Every update answers what changed, who is affected and when it starts.
New UPI transaction charges 2026: the new rules explained simply
Are there new charges on UPI transactions? Yes — but only for specified merchants on payments above ₹2,000. Consumers and P2P transfers stay free.
· 6 min read
UPI charges above ₹2,000: what the new rule means for you
The ₹2,000 figure is the threshold above which a merchant fee applies. Here's exactly what happens above and below it.
· 4 min read
What is MDR? UPI MDR charges explained in plain language
MDR stands for Merchant Discount Rate. It is what a business pays to accept a digital payment — and it is never billed to the customer.
· 5 min read
UPI merchant charges: who pays the new fee and how much
Following the money on a ₹10,000 UPI payment: what the merchant receives, what the provider keeps, and why the customer's side never changes.
· 4 min read
Explainers
Understand UPI
Short answers to the questions people actually search for.
What is UPI MDR?
Merchant Discount Rate, explained in plain language.
Are there new charges on UPI transactions?
The new rules, and who they actually apply to.
Who pays UPI merchant charges?
Following the money on a ₹10,000 payment.
What is the ₹2,000 UPI rule?
Threshold, not a limit. Here's the difference.
What is the UPI limit per day?
₹1 lakh default, higher for some categories.
UPI charges in Hindi
नए UPI चार्ज आसान भाषा में।
FAQ
Common questions
Straight answers on fees, limits and who pays. No jargon, no hedging.
See all 9 questions01Is there any charge on UPI transactions?
Not for consumers. The new 0.4% MDR announced for October 15, 2026 is a merchant-side fee on specified merchant payments above ₹2,000. Person-to-person transfers remain free.
02Will I pay more when using UPI?
No. Your account is debited the exact bill amount. The MDR is deducted from what the merchant receives, not from what you pay.
03What is MDR?
Merchant Discount Rate is the fee a merchant pays its bank or payment provider for accepting a digital payment. It is deducted from the amount settled to the merchant.
04What is the charge on UPI payments above ₹2,000?
For specified merchants, 0.4% of the transaction, capped at ₹300, from October 15, 2026, as reported. Payments of ₹2,000 or less are not affected.
05Who will pay the new UPI transaction charges?
The merchant, through its payment provider. Customers and people sending money to each other pay nothing extra.
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