💸 UPI MDR coming: Can splitting bills skip the fee?
A Merchant Discount Rate (MDR) of 0.4% will apply to UPI payments over Rs 2,000 for large merchants starting October 15, 2026. Currently, NPCI has no daily cap on repeated UPI payments to a single merchant. This means a Rs 6,000 bill could potentially be split into three Rs 2,000 payments to avoid the charge. The NPCI framework does not mandate that multiple payments for one bill must be combined into a single transaction. Business executives suggest merchants might explore these workarounds once the new rules are implemented.