NPCI FAQ on UPI MDR framework effective October 15, 2026:
- A MDR of 0.4% will be introduced on Person-to-Merchant (P2M) UPI transactions above ₹2,000.
- For transactions of ₹75,000 and above, the MDR will be capped at ₹300 per transaction.
- Person-to-person (P2P) transactions remain free regardless of value.
- Small merchants receiving up to ₹1 lakh monthly through UPI QR codes under the P2PM category remain exempt.
- Essential sectors (railways, telecom, insurance, fuel, agricultural inputs) pay ₹5 per transaction above ₹2,000.
- Mutual fund and capital market payments: 0.02% MDR, capped at ₹300.
- Consumers are not charged directly; MDR is paid within the merchant payment ecosystem.
- UPI Mandates/AutoPay recurring payments are not subject to the prescribed MDR charges.
The operational parameters are decided by the UPI and Services Steering Committee, headed by NPCI.