Proposed UPI MDR above ₹2,000 could lift merchant payment-acceptance costs

The Finance Ministry has signalled possible MDR charges on UPI person-to-merchant payments above ₹2,000. A proposed 0.4% fee is pending an NPCI steering committee decision; about 96% of UPI transactions could remain exempt.

— Source publishedTue, 15 Sept, 2026, 13:50 IST·First seen Tue, 15 Sept, 2026, 14:20 IST·Source Business Today · Latest

What happened

Finance Ministry signals possible MDR charges on UPI person-to-merchant payments above ₹2,000. A proposed 0.4% fee could raise merchant acceptance costs, while

Key facts

  • ₹2,000
  • 0.4%
  • 96%

Why this matters

Prioritize partnerships or acquisitions that help merchants optimize payment routing, reconciliation, and surcharge-compliant checkout capabilities if UPI MDR expands beyond the current zero-fee model.