Wire · operational-macro
Centre fixes 0.4% fee on UPI transactions above Rs 2000 from October 15
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Fusion42 · 16 September 2026 · Fusion42 review
The Indian government will impose a 0.4% merchant discount rate (MDR) fee on UPI transactions above Rs 2,000 from October 15, capped at Rs 300 per transaction, affecting person-to-merchant payments while keeping person-to-person transfers free. The fee aims to sustain the UPI payment ecosystem and encourage investment, while protecting small merchants from charges.
This Wire brief sits within Fusion42's coverage of Fintech, and 3 sources have reported it.
◆ ◆ The Wire takeaway
You must now factor UPI transaction fees over Rs 2,000 into your revenue model or pricing if you serve Indian merchants. This opens a path to improve payment infrastructure but means you risk losing customers unwilling to pay extra.
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3 sources · 16 Sep 2026
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