What is the purpose of introducing MDR on large UPI transactions?

The purpose is to regulate transaction costs without imposing fees on users, ensuring merchants share the cost.

Will the MDR charges impact small UPI transactions?

No, the MDR charges apply only to high-value UPI transactions, so small transactions remain unaffected.

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RBI Supports MDR on Large UPI Transactions, Users to Pay No Fee

New UPI charges to start from October 15, experts explain impact on users

The Reserve Bank of India has backed the merchant discount rate (MDR) on large-value Unified Payments Interface (UPI) transactions, assuring that users will not be charged any fee. The new charges are set to roll out from October 15, with experts clarifying what this means for consumers and merchant

Reported by: निहारिका टाइम्स न्यूज़ डेस्क

Published Sep 16, 2026

News Desk, Niharika Times

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The Reserve Bank of India has approved a merchant discount rate (MDR) on large-value UPI transactions, effective from October 15, while ensuring that users will not be charged any fees. The MDR will be borne by merchants and payment service providers, with no direct cost to consumers.

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UPI payment transaction illustration / Social Media

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The RBI's support for MDR on high-value UPI payments aims to regulate transaction costs while protecting users from direct charges. Experts have explained that while merchants may bear the MDR, users will continue to enjoy free transactions. The implementation of these charges is expected to affect payment service providers and merchants differently, with some standing to gain more than others.

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What is the purpose of introducing MDR on large UPI transactions?: The purpose is to regulate transaction costs without imposing fees on users, ensuring merchants share the cost.
Will the MDR charges impact small UPI transactions?: No, the MDR charges apply only to high-value UPI transactions, so small transactions remain unaffected.

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PublishedSep 16, 2026, 20:42 IST IST

Last updatedSep 16, 2026, 20:42 IST IST

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RBI Supports MDR on Large UPI Transactions, Users to Pay No Fee

New UPI charges to start from October 15, experts explain impact on users

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