UPI merchant payments above ₹2,000 to attract 0.4% MDR from Oct. 15

A 0.4% merchant discount rate on UPI person-to-merchant transactions above ₹2,000 is set to take effect October 15, reshaping payment acceptance costs for retailers and potentially affecting high-value UPI transaction volumes initially.

— Source publishedWed, 16 Sept, 2026, 06:32 IST·First seen Wed, 16 Sept, 2026, 07:19 IST·Source The Hindu BusinessLine

What happened

UPI person-to-merchant transactions above ₹2,000 will attract a 0.4% MDR from October 15. NSE expects an initial hit to transaction volumes before

Key facts

  • ₹2,000
  • 0.4%
  • October 15
  • ₹1,200 crore

Why this matters

Payments, POS and merchant-acquiring providers may gain partnership and cross-sell opportunities as retailers seek lower-cost routing, surcharge alternatives and transaction-optimization tools.

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