FAQ
Common questions about UPI charges
Straight answers on fees, limits and who pays.
01Is 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.
06Are P2P transfers charged?
No. Sending money to friends, family or any individual stays free.
07What is the UPI transaction limit per day?
₹1,00,000 per day for regular payments. NPCI allows higher per-transaction limits for specific categories such as insurance, capital markets, travel and credit card bill payments. Your bank may apply lower limits.
08What is the full form of UPI?
Unified Payments Interface. It is operated by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI).
09Where can I verify this information?
Every article on UPICharges links to its sources. We prioritise NPCI, RBI, Government of India and official bank documentation.