# NPCI sets 0.4% MDR on UPI payments above Rs 2,000 from Oct 15

2026-09-15T14:01:35+00:00 | Governance | Indian Opinion Desk

Corroboration: 11 independent outlets

The National Payments Corporation of India has notified a 0.4% Merchant Discount Rate on person-to-merchant UPI transactions above Rs 2,000, effective from October 15, 2026. The MDR is capped at Rs 300 for transactions of Rs 75,000 and above. Transactions up to Rs 2,000 and all person-to-person payments remain free. The Times of India reports the move follows an amendment to the Payment and Settlement Systems Act passed in August, which created an enabling framework for MDR. The NPCI's 22-member steering committee, including the Indian Banks' Association and Payments Council of India, decided on the rate after considering ecosystem sustainability and global benchmarks such as Brazil's 0.33% and China's 0.40% merchant charges. The government said only about 4% of merchant transactions exceed Rs 2,000, so small vendors remain unaffected. Congress leaders Rahul Gandhi and Jairam Ramesh criticised the move, alleging it paves the way for consumer fees and that the government is bowing to pressure from US payment firms, claims the finance minister has denied.

## Indian Opinion Analysis

Government-aligned sources frame the MDR as a modest, pro-sustainability measure affecting only 4% of transactions, citing global benchmarks. The Congress criticism, carried by National Herald and India Today, flags the removal of statutory protection and warns that costs will pass to consumers. Both sides rely on selective data: the government uses volume share while Gandhi cites value share (65% above Rs 2,000). The October 15 implementation date and the actual pass-through to consumers are now the concrete test points.

## Coverage

- livelaw.in (neutral report) <https://www.livelaw.in/lawschool/articles/cost-of-convenience-upi-mdr-india-digital-future-550000>
  Explainer on UPI economics, no partisan slant
- gadgets360.com (neutral report) <https://www.gadgets360.com/internet/news/using-upi-for-more-than-rs-2000-here-s-what-it-means-for-your-wallet-12048975>
  Straight government clarification, no editorialising
- nationalheraldindia.com (government critical) <https://www.nationalheraldindia.com/politics/congress-questions-upi-notification-warns-it-could-pave-way-for-transaction-fees>
  Leads with Congress allegations of fee paving
- livemint.com (neutral report) <https://www.livemint.com/money/personal-finance/upi-services-steering-committee-decide-mdr-charges-transactions-over-rs-2000-what-change-customers-merchant-payments-fee-11789466845186.html>
  Business explainer on committee and rate details
- rediff.com (neutral report) <https://www.rediff.com/business/report/banks-panel-to-decide-on-upi-charges-above-rs-2000/20260915.htm>
  PTI-sourced news report, no slant
- indiatoday.in (government critical) <https://www.indiatoday.in/diu/story/upi-fees-above-rs-2000-npci-talks-merchant-payments-stay-free-2995079-2026-09-15>
  Leads with Rahul Gandhi's allegations against government
- news.abplive.com (government critical) <https://news.abplive.com/business/any-levy-on-upi-is-just-tax-collection-ashneer-grover-says-opposing-govt-stance-1866856>
  Ashneer Grover opposes levy, calls it tax collection
- indiatvnews.com (pro government) <https://www.indiatvnews.com/technology/news/will-upi-payments-above-rs-2000-be-charged-government-clarifies-new-rules-2026-09-15-1054298>
  Headline reassures consumers no extra fees
- indiatoday.in (government critical) <https://www.indiatoday.in/india/video/ucc-implementation-by-2029-jdu-and-ljp-demand-consultation-as-nda-allies-hesitate-ytvd-2995140-2026-09-15?utm_source=rss>
  Leads with Rahul Gandhi's allegations against government
- ndtvprofit.com (neutral report) <https://www.ndtvprofit.com/business/new-upi-fee-rules-rs-5-mdr-on-select-transactions-over-rs-2-000-0-4-levy-on-large-merchant-payments-12050129#publisher=newsstand>
  Report on consultations, no slant
- ndtvprofit.com (neutral report) <https://www.ndtvprofit.com/business/rbi-ncpi-considering-0-4-charge-on-large-upi-payments-above-rs-2-000-report-12049704#publisher=newsstand>
  Report on consultations, no slant
- hindustantimes.com (neutral report) <https://www.hindustantimes.com/india-news/upi-charge-mdr-0-4-to-be-levied-on-merchant-transactions-above-2-000-free-for-consumers-person-to-person-transaction-101789478946753.html>
  Detailed rules explainer, neutral tone
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/business/india-business/mdr-on-upi-notified-npci-says-0-4-fee-applicable-on-person-to-merchant-transactions-above-rs-2000-effective-october-15-2026/articleshow/134265294.cms>
  Straight factual report with effective date

Tags: Jairam Ramesh, merchant discount rate, Nirmala Sitharaman, NPCI, Rahul Gandhi, UPI
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