UPI MDR Rules 2026

Independent explainer based on the Ministry of Finance / Department of Financial Services FAQ dated 15 September 2026.

Core rates

Scenario	MDR
P2P, any permitted amount	₹0
P2M ≤ ₹2,000	₹0
Eligible P2PM small merchant	₹0
Normal P2M > ₹2,000	0.4%, capped at ₹300
Specified essential / industry-program categories > ₹2,000	₹5 flat
Capital markets	0.02%, capped at ₹300
UPI Mandate / AutoPay	No prescribed MDR
Credit-linked UPI	Separate credit-product rules

Important thresholds

Framework effective: 15 October 2026.
₹300 cap starts at ₹75,000 for the 0.4% tier.
P2PM: up to ₹1 lakh/month through UPI QR; the FAQ says inward credits above ₹1 lakh/month for 3 consecutive months transition the merchant to P2M.
A P2PM merchant does not become chargeable merely because one customer pays more than ₹2,000.

Special categories

The FAQ explicitly names railways, telecom services, insurance and fuel for the ₹5 flat treatment above ₹2,000. It also describes industry-program categories including public utility bill collections and education, but does not give one universal numeric rate for every such category. A calculator should therefore avoid inventing a rate where the official text does not provide one.

Capital-market payments include mutual funds, securities, SEBI-registered stockbrokers and securities dealers; the stated rate is 0.02%, capped at ₹300.

Customer protection

The FAQ says consumers will not be charged UPI fees, UPI apps shall not charge platform fees or other charges for UPI payments, and merchants cannot pass MDR to buyers.

FAQ · Examples · Disclaimer