# 0.4% UPI merchant fee from Oct 15, consumers spared

2026-09-16T09:57:14+00:00 | Governance | Indian Opinion Desk

Corroboration: 7 independent outlets

The government will levy a 0.4% Merchant Discount Rate (MDR) on UPI payments above Rs 2,000 made to merchants from October 15. The fee is capped at Rs 300 per transaction and is paid by merchants, not customers. Person-to-person transfers and UPI AutoPay recurring payments remain free. Small merchants receiving up to Rs 1 lakh monthly are exempt. Opposition MPs called the move 'anti-people' in a parliamentary panel meeting, accusing the government of bowing to US pressure. The finance ministry denied foreign influence, saying India's UPI policy is independent. The All India Petroleum Dealers Association has sought exemption for fuel transactions, where even a flat Rs 5 charge could strain thin margins.

## Indian Opinion Analysis

The Opposition's 'anti-people' charge and the government's denial of foreign influence frame the same policy differently: critics highlight the end of zero-MDR and the potential regressive burden on small businesses, while the government emphasises consumer exemptions and the need for a self-sustaining system. Neither side disputes that person-to-person transfers remain free. Lost in the political exchange is the nuanced exemption for small merchants and the flat Rs 5 charge for fuel, which fuel dealers are now demanding be extended. The panel's next meeting will show whether the opposition can force a rollback.

## Coverage

- ndtv.com (neutral report) <https://www.ndtv.com/business-news/new-upi-mdr-charges-from-october-15-10-things-every-user-should-know-before-paying-online-12053724>
  Led with clear break down of what MDR means for consumers vs merchants, neutral tone.
- hindustantimes.com (neutral report) <https://www.hindustantimes.com/india-news/upi-autopay-will-you-now-pay-extra-for-ott-sip-and-bill-payments-what-new-mdr-rules-say-101789543390491.html>
  Focused on clarifying that UPI AutoPay is exempt, factual Q&A format.
- thehindu.com (neutral report) <https://www.thehindu.com/business/Industry/upi-mdr-how-are-charges-calculatedtransactions/article71471117.ece>
  Detailed NPCI circular, included effective date and government statement that only 4% of transactions attract charge.
- news.abplive.com (neutral report) <https://news.abplive.com/business/upi-charges-october-15-0-4-mdr-payments-above-rs-2000-who-will-pay-1866981>
  Explained various MDR categories with examples, neutral explanatory fram.
- newindianexpress.com (government critical) <https://www.newindianexpress.com/india/2026/Sep/16/opposition-mps-call-centres-decision-to-levy-fee-on-upi-payments-above-rs-2000-to-merchants-as-anti-people>
  Led with opposition MPs calling move 'anti-people', gave their criticism and government's ring-fencing of small payments.
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/story/upi-mdr-fee-centre-faq-foreign-influence-charge-us-trump-opposition-2995827-2026-09-16?utm_source=rss>
  Led with government rejecting 'foreign influence' charge, quoted Congress allegation and ministry denial.
- timesnownews.com (neutral report) <https://www.timesnownews.com/business-economy/industry/petrol-pump-dealers-push-back-against-upi-mdr-above-rs-2000-seek-exemption-article-156167687>
  Focused exclusively on petroleum dealers' demand for exemption, gave their financial arguments.

Tags: Ministry of Finance, NPCI, UPI
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