# UPI fee on payments above Rs 2,000 from October 15 2026-09-16T16:57:14+00:00 | Governance | Indian Opinion Desk Corroboration: 4 independent outlets The government will levy a 0.4% merchant discount rate (MDR) on UPI person-to-merchant transactions above Rs 2,000 from October 15, ending six years of a zero-fee network for merchants. Person-to-person transfers and transactions up to Rs 2,000 remain free. For fuel, telecom, insurance, railways and agricultural inputs, a flat Rs 5 MDR applies. The charge is capped at Rs 300 for transactions of Rs 75,000 or more. A PIL has been filed in the Supreme Court challenging the move as arbitrary and lacking transparency. Petrol dealers and traders' bodies have sought exemptions or a rollback, warning of margin pressure and a possible shift back to cash. Paytm's CEO said the policy will boost his company's revenue. The Global Trade Research Initiative suggested the change may be driven by US pressure on India's preferential treatment of UPI and RuPay. ## Indian Opinion Analysis Pro-government sources, including Paytm's CEO and MobiKwik's co-founder, frame the MDR as essential for payment companies to sustain and invest in the UPI ecosystem. Critical coverage from Livemint, Rediff and others leads with warnings from retailers, petrol dealers and a PIL petitioner that the charge squeezes margins, risks cash reversion and was imposed without consultation. Neither side addresses the other's core argument: proponents do not address the timing burden on small merchants, while critics ignore the industry's long-standing demand for a revenue stream. The PIL hearing and the October 15 rollout are the next events to track. ## Coverage - livemint.com (government critical) Leads with petrol dealers seeking exemption, warns pumps may stop UPI - livemint.com (government critical) Leads with petrol dealers seeking exemption, warns pumps may stop UPI - livemint.com (government critical) Leads with petrol dealers seeking exemption, warns pumps may stop UPI - ndtvprofit.com (neutral report) Leads with PIL details, gives government rationale in later paragraphs - businesstoday.in (government critical) Leads with Thyrocare founder calling for free UPI, quotes critics - businesstoday.in (government critical) Leads with Thyrocare founder calling for free UPI, quotes critics - rediff.com (government critical) Leads with GTRI warning that MDR may push users back to cash - rediff.com (government critical) Leads with GTRI warning that MDR may push users back to cash - rediff.com (government critical) Leads with GTRI warning that MDR may push users back to cash - rediff.com (government critical) Leads with GTRI warning that MDR may push users back to cash Tags: merchant discount rate, NPCI, RBI, Supreme Court, UPI Canonical: https://indianopinion.org/upi-fee-on-high-value-merchant-payments-from-oct-15-faces-legal-challenge/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/upi-fee-on-high-value-merchant-payments-from-oct-15-faces-legal-challenge/#story-in-brief