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UPI MDR FAQ 2026

Will customers pay MDR?

No. The official FAQ says UPI remains free for consumers and merchants cannot pass MDR to buyers.

Is P2P UPI free above ₹2,000?

Yes. P2P remains free irrespective of amount.

What is the standard MDR above ₹2,000?

0.4% for specified normal P2M transactions, capped at ₹300 for ₹75,000 and above.

What happens to a P2PM merchant receiving ₹5,000?

If the merchant remains in the exempt P2PM category, the payment remains zero-MDR. The FAQ says MDR applicability is based on overall merchant account categorisation.

When does a P2PM merchant transition?

The FAQ says inward UPI credits above ₹1 lakh per month for 3 consecutive months cause formal transition to P2M.

Are AutoPay payments charged?

The FAQ says automated recurring standing instructions (UPI Mandates/AutoPay) do not carry prescribed MDR charges.

What about RuPay Credit Card on UPI?

Credit-linked UPI operates under separate credit-product rules and is not part of the direct account-to-merchant MDR calculation.

What is the capital-market rate?

0.02%, capped at ₹300, for mutual funds, securities, stockbrokers and dealers as specified in the FAQ.

What about education fees?

The FAQ describes special flat-fee/capped treatment for education collections above ₹2,000 but does not state one universal numeric rate. Verify the merchant's actual classification and acquiring-bank treatment.