π° UPI MDR fees coming, here's the lowdown πΈ
NPCI has announced that additional charges will be allowed on certain UPI payments starting October 15, 2026. This change affects mid-to-large merchants processing over βΉ2,000 per transaction, with a 0.4% fee applying generally. Essential sectors like railways and fuel get a flat MDR of βΉ5 per transaction for cost certainty. Importantly, all P2P transactions and small merchant payments up to βΉ1 lakh remain free from any charges. The bulk of the revenue is projected to go to banks like Yes Bank and payment apps like PhonePe.