Starting October 15, 2026, the new Merchant Discount Rate (MDR) framework will apply to certain Unified Payment Interface (UPI) transactions made by merchants. 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.
This does not mean that customers will have to pay a charge every time they use the UPI. The MDR charges are aimed at selected merchant transactions and are linked to transactions above the prescribed limit. In other words, regular UPI payments will not automatically attract an MDR simply because the payment is made through the UPI.
