Soon Unified Payment Interface (UPI) transactions made by merchants will attract the Merchant Discount Rate (MDR) on select transactions. The MDR will not be the same for every merchant, as the applicable rate will depend on the industry or the category in which the merchant operates. The new MDR on select UPI transactions will become applicable from October 15, 2026.
Payments up to Rs 2,000 and transactions under the zero-MDR framework for small traders would remain free. As a result, about 96% of all P2M transactions will remain unaffected. The MDR will only apply to specific merchant transactions above Rs 2,000.
