BharatPe backs UPI MDR framework, says most merchant payments stay unaffected

BharatPe said UPI will remain free for consumers and micro/small merchants under the new MDR framework. A 0.4% fee on merchant transfers above ₹2,000 from October 15 would affect about 4% of P2M transactions, it said.

— Source publishedFri, 18 Sept, 2026, 09:51 IST·First seen Fri, 18 Sept, 2026, 10:24 IST·Source Business Today · Latest

What happened

BharatPe backed India’s new UPI MDR framework, saying consumers and micro/small merchants will continue to face zero charges. It said the 0.4% fee on merchant

Key facts

  • 0.4% MDR fee
  • UPI merchant transfers above ₹2,000
  • October 15
  • approximately 96% of P2M transactions unaffected
  • zero MDR for micro and small merchants under P2PM

What changed

BharatPe backed India’s new UPI MDR framework, saying consumers and micro/small merchants will continue to face zero charges. It said the 0.4% fee on merchant payments above ₹2,000 will support payment infrastructure and leave roughly 96% of P2M transactions unaffected.

Why this matters

Retailers should assess exposure to the 0.4% UPI MDR on merchant payments above ₹2,000 from October 15, while smaller-ticket transactions and consumer pricing are likely to remain largely unaffected.