21/09/2026
๐ข UPI Payment Fees Update: What You Need to Know!
Starting 15th October 2026, new UPI M.D.R (Merchant Discount Rate) rules are coming into effect, but thereโs no need to panic! Let's break down how it actually affects you as a customer or merchant.
๐ก Key Highlights:
Applicable on Merchants Only: These charges are strictly for merchants, not for regular customers.
Zero Charges for Small Transactions: UPI payments up to โน2,000 carry 0% charges for merchants.
Transactions Above โน2,000: For payments exceeding โน2,000, a fee of 0.4% or a maximum of โน300 will be charged to the merchant.
Person-to-Person & Small Merchants: Completely free (0% charges) for P2P transfers and small merchants.
Investments & Specific Sectors: Investment platforms (Mutual Funds, Stocks) carry a rate of 0.02% (capped at โน300). Sectors like fuel, telecom, insurance, railways, and utilities have a flat fee of โน5 on payments above โน2,000.
๐ Important Note for Customers:
Neither banks nor any UPI apps can pass these charges on to end customers. If you make a โน10,000 payment to a merchant, the applicable M.D.R is borne entirely by the merchant, keeping your daily transactions completely safe and seamless.
Keep using UPIโit remains fast, secure, and convenient!
Stay informed, stay ahead! ๐
Disclaimer: Investments in securities market are subject to market risks, read all the related documents carefully before investing.