REGULATION · IN
India imposes merchant discount rate on UPI transactions above 2,000 rupees
India's Reserve Bank is introducing a 0.4% merchant fee (MDR) on UPI payments exceeding 2,000 rupees (~$21), ending six years of zero-fee transactions. The change applies to merchant acceptance of the digital payment system.
WHY IT MATTERS
Fee introduction shifts UPI economics for merchants and platforms; lower-value transactions remain free, but medium/large payments now carry friction that may redirect volume to competing payment rails or cards.
Source: PYMNTS · 2026-09-16