Wire · operational-macro
UPI payments above Rs 2000 to attract 0.4% MDR: New rules explained
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Fusion42 · 17 September 2026 · Fusion42 review
The National Payments Corporation of India (NPCI) has introduced a 0.4% Merchant Discount Rate (MDR) on UPI payments above Rs 2,000 made to merchants, while payments up to Rs 2,000 and peer-to-peer UPI transfers remain free. Special MDR caps and categories apply, and small vendors retain zero MDR for transactions up to Rs 1 lakh per month.
This Wire brief sits within Fusion42's coverage of Fintech, and 4 sources have reported it between 15 Sep 2026 and 16 Sep 2026.
◆ ◆ The Wire takeaway
You now face fresh costs on large UPI merchant payments, changing the free digital payments game in India. Adjust your pricing or merchant onboarding strategy to reflect transaction fee impacts above Rs 2,000.
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4 sources · first reported 15 Sep 2026 · latest 16 Sep 2026
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