UPI merchant fee set: 0.4% above ₹2,000, capped at ₹300
NPCI and Ministry of FinancePostponed
By Clarifee teamAnnounced Last checked
A 0.4% MDR on merchant UPI payments above ₹2,000, capped at ₹300 from ₹75,000. Essential sectors (railways, telecom, insurance, fuel, agricultural inputs) pay a flat ₹5, and capital-market payments 0.02% capped at ₹300. It was due on 15 Oct 2026 and was postponed on 13 Oct.
What it means for you
Once it starts, larger UPI payments will arrive with a small deduction, as card payments do today.
Official sources
Related
- NPCI FAQ: UPI fee to start after Diwali, date to be notifiedNPCI · 15 Oct 2026
- New process for disputes over wrong UPI merchant categoriesNPCI · 14 Oct 2026
- PhonePe in-store UPI fees will start when NPCI sets the datePhonePe · 14 Oct 2026
- UPI merchant fee above ₹2,000 postponed until after DiwaliNPCI · 13 Oct 2026
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