tech πΈ UPI rules changing: who pays the MDR fee?
UPI rules are changing starting from October 15, 2026, introducing a Merchant Discount Rate (MDR) on certain transactions. Eligible merchants in various locations will now pay a standard MDR of 0.4% for UPI payments over Rs 2,000. Person-to-person transfers remain free, while P2M payments above Rs 2,000 are subject to this charge. Essential services like fuel have a flat Rs 5 MDR, but small vendors under Rs 1 lakh/month stay zero-MDR. Ultimately, the merchant bears this cost, not the end consumer.