NPCI to allow MDR on UPI merchant payments above ₹2,000 from October 15

NPCI will permit merchants to be charged up to 0.4% MDR on UPI P2M transactions above ₹2,000 from October 15. Paytm says the change could create incremental merchant-services revenue, while customers will not be charged.

— Source publishedWed, 16 Sept, 2026, 10:18 IST·First seen Wed, 16 Sept, 2026, 10:40 IST·Source Financial Express · BrandWagon

What happened

NPCI will allow merchants to be charged up to 0.4% MDR on UPI P2M transactions above Rs 2,000 from October 15. Paytm expects additional merchant-business

Key facts

  • MDR of up to 0.4%
  • UPI P2M transactions above Rs 2,000
  • Effective October 15
  • Paytm shares opened 5% higher
  • Paytm shares gained 57.3% in three months
  • Paytm shares gained 71.88% in six months
  • Paytm shares gained 34.98% year-to-date

Why this matters

The new UPI monetization framework makes merchant-acquiring, checkout, and value-added payment partnerships more strategically attractive, especially in higher-ticket categories.