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Earlier report,
UPI MDR starts 15 October: 0.4% on merchant payments above ₹2,000, capped at ₹300 for ₹75,000-plus transactions
Since then, : New: UPI transactions processed in August 2026: over 24 billion
Our read
With over 95% of P2M transactions still free, the desk expects UPI volumes to hold and the real change to show up as checkout steering and pricing tiers on payments above ₹2,000.
For operators
From 15 October, UPI payments above ₹2,000 at your tills and checkout will carry 0.4% MDR (capped at ₹300 from ₹75,000 up), so model the hit on big-ticket baskets, compare it with your card MDR, and decide now whether to absorb it or steer customers to another tender; merchants under ₹1 lakh a month stay at zero.
Watch
An NPCI circular or notification that changes the thresholds, category list or the 15 October start date
The report,
NPCI will apply MDR on person-to-merchant UPI payments above ₹2,000 from 15 October 2026, at 0.4%, or a flat ₹5 in essential categories. Payments up to ₹2,000 and P2P transfers stay free, and small merchants up to ₹1 lakh per month keep zero MDR.
- MDR on P2M UPI transactions above ₹2,0000.4%
- MDR on mutual funds and securities payments0.02%
What we verified
Checked against the other reports of this story.
- 0.4% — Mint and Financial Express agree.
- MDR cap for transactions of Rs 75,000 and above: Rs 300 — Mint and Financial Express agree.
- Rs 5 — Mint and Moneycontrol agree.
Updates
Each later report on this story, newest first. Earlier entries are never edited; a correction is a new entry.
New: UPI transactions processed in August 2026: over 24 billion
- Limit in first 24 hours after new registration: Rs 5,000
Reported as “UPI merchants face 0.4% MDR on payments above Rs 2,000 from 15 October, capped at Rs 300”
UPI MDR rollout likely deferred to 1 January 2027 from 15 October, giving merchants breathing room through the festive season
- Payment aggregators' sought share of banks' MDR portion: 50-80%
- Supreme Court refusal to stay MDR decision: September 28
Channel facts
From the report. Source details below
| MDR on mutual funds and securities payments: | 0.02% |
|---|---|
| Share of P2M transactions unaffected (up to ₹2,000): | more than 95% |
| Share of UPI transaction value outside MDR: | 70% |