UPI MDR returns for select merchant payments above ₹2,000 from October 15
India’s revised UPI merchant-discount-rate framework introduces charges on select transactions above ₹2,000. PhonePe and MobiKwik back the move as necessary to sustain payments infrastructure, while BharatPe’s Ashneer Grover has criticised it as a tax.
What happened
India’s revised UPI MDR framework will levy merchant charges on select transactions above ₹2,000 from October 15. PhonePe and MobiKwik support the measure as
Key facts
- ₹5 flat MDR on certain UPI transactions above ₹2,000
- 0.4% MDR on other P2M UPI transactions above ₹2,000, capped at ₹300
- 0.02% MDR on capital-market UPI payments, capped at ₹300
- 70–80 crore UPI transactions daily
- NPCI pre-tax surplus: ₹1,888 crore
What changed
India’s revised UPI MDR framework will levy merchant charges on select transactions above ₹2,000 from October 15. PhonePe and MobiKwik support the measure as sustainable for payment infrastructure, while BharatPe’s Ashneer Grover calls it a tax.
Why this matters
Retailers processing eligible UPI payments above ₹2,000 should prepare for higher acceptance costs from October 15 and reassess checkout, pricing and payment-routing economics.
What to watch
- Final circular defining eligible merchant categories, MDR rate, payer/payee liability, transaction aggregation rules and exemptions.
- NPCI, RBI and payment-app implementation guidance, including whether charges apply at QR, intent, collect and gateway flows.
- Merchant-acquirer notices on fee pass-through, settlement timing and promotional rebates.
- UPI transaction-value migration above ₹2,000, particularly in electronics, grocery wholesale, fashion, travel and fuel-adjacent retail.
- Evidence of merchant surcharging complaints, consumer backlash, enforcement actions or litigation.
Also reported by
- Mint · Money — 1h after first sighting