DFS clarifies UPI MDR is not passed on to customers

The Department of Financial Services said a circulated screenshot reflected merchant-side settlement on a RuPay credit-card-linked UPI payment, not a customer charge. Eligible small-merchant UPI transactions up to Rs 2,000 continue to carry zero MDR under applicable rules.

— Source publishedWed, 16 Sept, 2026, 17:55 IST·First seen Wed, 16 Sept, 2026, 18:26 IST·Source NDTV Profit

What happened

DFS said UPI MDR is not passed to customers; a circulated screenshot reflected merchant-side settlement for a RuPay credit-card-linked UPI payment. Direct

Key facts

  • Rs 2,000
  • Rs 20 lakh

Why this matters

Prioritize partnerships that help merchants distinguish bank-account UPI from RuPay credit-card-linked UPI, including settlement transparency, routing, and reconciliation tools.