UPI MDR framework targets payments above ₹2,000, reshaping merchant acceptance costs
From 15 October 2026, standard P2M UPI payments above ₹2,000 would attract 0.40% MDR, capped at ₹300. Railways, telecom, insurance and fuel face a ₹5 flat fee, while capital-market payments carry 0.02%. Eligible small P2PM merchants remain exempt.
What happened
India’s UPI MDR framework introduces merchant fees on P2M payments above ₹2,000, with sector-specific and capital-market rates. Eligible small P2PM merchants
Key facts
- 15 October 2026
- 0.40% MDR for standard P2M UPI transactions above ₹2,000
- ₹300 MDR cap for transactions of ₹75,000 or more
- ₹5 flat MDR for railways, telecom, insurance and fuel transactions above ₹2,000
- 0.02% MDR for capital-market UPI payments, capped at ₹300
What changed
India’s UPI MDR framework introduces merchant fees on P2M payments above ₹2,000, with sector-specific and capital-market rates. Eligible small P2PM merchants remain protected, affecting payment-acceptance costs for retailers and service providers.
Why this matters
Prepare to absorb, pass through or steer around the proposed 0.40% MDR on UPI transactions above ₹2,000, while preserving exempt small-merchant flows and optimizing high-ticket payment routing.