Wire · operational-macro
Govt sets 0.4% fee on UPI merchant payments above Rs 2000
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Fusion42 · 16 September 2026 · Fusion42 review
The Indian government will impose a 0.4% Merchant Discount Rate (MDR) on UPI person-to-merchant transactions exceeding Rs 2,000 starting October 15, with specific caps and exemptions for essential sectors and small merchants. The fee is paid by merchants only and is not passed on to consumers, aiming to support payment ecosystem participants and infrastructure investment.
This Wire brief sits within Fusion42's coverage of Fintech, and 42 sources have reported it between 19 Jul 2026 and 16 Sep 2026.
◆ ◆ The Wire takeaway
The introduction of MDR on higher-value UPI payments turns the cost focus onto merchants, setting a clear cost structure you need to factor into your service pricing and merchant agreements this quarter. Smaller transactions remain free, preserving volume access but reshaping mid-to-high value payment economics.
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42 sources · first reported 19 Jul 2026 · latest 16 Sep 2026
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