UPI keeps sub-₹2,000 merchant payments free; panel to set MDR above cap
UPI and RuPay debit-card merchant payments up to ₹2,000 will remain charge-free, covering 96% of UPI transactions. A 22-member industry panel will recommend MDR for higher-value payments, creating a potential new acceptance-cost consideration for retailers.
What happened
India will keep UPI merchant payments up to ₹2,000 free, covering 96% of transactions. A 22-member panel of banks, providers and industry bodies will set MDR
Key facts
- 96% of UPI merchant transactions are below ₹2,000
- UPI and RuPay debit-card transactions up to ₹2,000 are charge-free
- Debit and credit card MDR is around 1%-2%
- July 2026 UPI volume: 2,366 crore transactions
- July 2026 UPI value: ₹29.9 lakh crore
- Brazil PIX merchant charge: around 0.33%
- China merchant charge: 0.40%
- UPI & Services Steering Committee has 22 members
Why this matters
Payments providers and retail platforms may gain an opening to package MDR-optimization, routing, and checkout solutions for merchants facing new costs on higher-value UPI transactions.
Also reported by
- The Hindu BusinessLine — Same time