UPI MDR framework to add 0.02% fee on mutual fund and securities payments from 15 October
Under the new UPI MDR framework, capital-market payments above ₹2,000 will attract a 0.02% merchant discount rate, capped at ₹300 per transaction. The charge is aimed at merchants and intermediaries rather than consumers.
What happened
India’s new UPI MDR framework will charge merchants and intermediaries, not consumers, from 15 October 2026. Capital-market UPI payments, including mutual funds
Key facts
- 15 October 2026
- UPI payments above ₹2,000
- 0.4% MDR for general merchant payments
- 0.02% MDR for capital-market payments
- ₹300 maximum MDR per transaction
What changed
India’s new UPI MDR framework will charge merchants and intermediaries, not consumers, from 15 October 2026. Capital-market UPI payments, including mutual funds and securities purchases, will carry 0.02% MDR capped at ₹300 per transaction.
Why this matters
Prepare to absorb or renegotiate the capped 0.02% UPI MDR on capital-market payments above ₹2,000, as the fee will pressure intermediary economics more than consumer demand.