UPI merchant-fee proposal faces political pushback ahead of October rollout
NPCI’s proposed MDR framework would levy merchants 0.4% on eligible UPI P2M payments above ₹2,000, capped at ₹300 per transaction, from 15 October 2026. The plan is facing a political dispute over whether Parliament’s finance committee backed merchant charges.
What happened
NPCI’s proposed MDR framework would charge merchants 0.4% on eligible UPI P2M transactions above ₹2,000, capped at ₹300. The proposal has triggered political
Key facts
- 0.4% MDR
- ₹300 maximum MDR per transaction
- ₹2,000 eligible P2M transaction threshold
- 15 October 2026 implementation date
- three-year digital payments plan
Why this matters
Payments, POS and merchant-acquiring providers should assess partnership and pricing opportunities around MDR-enabled UPI acceptance, while treating the October 2026 framework as uncertain pending political resolution.