BIG NEWS
- SpiceJet Under Fire: Delhi Passengers Protest Over 24-Hour Dubai Flight Delays
- UPI Merchant Fee Proposal: What You Need to Know
- Gurugram Hit-And-Run Driver Kalyan Bainsla Arrested In Rajasthan, Attempt-To-Murder Charge Added
- Meta Agrees to Report Child Sexual Abuse Cases Directly to Indian Law Enforcement Agencies
- Meta Agrees to Report Child Safety Cases to Indian Law Enforcement Amid Centre's Crackdown
- Government Bars Fees on UPI Payments Up to Rs 2,000 and RuPay Debit Cards
- NDA Allies Split Over UCC Push: JD(U) Rejects Bihar Rollout While TDP and Sena Back Shah's Call
- Rajasthan Civic Polls: BJP Edges Out Congress, Independents Dominate Chief Minister's Turf
- US Ends 'Duration of Status' for International Students Starting from 15 September
- CBI Registers FIR in Disha Salian Death Case, Names Aaditya Thackeray and Rhea Chakraborty
UPI Merchant Fee Proposal: What You Need to Know
Public Lokpal
September 15, 2026
.jpg)
UPI Merchant Fee Proposal: What You Need to Know
The Reserve Bank of India and NPCI are discussing a proposed 0.4% Merchant Discount Rate (MDR) on high-value UPI transactions made to businesses.
Crucially, everyday users remain unaffected. Transactions up to Rs 2,000 remain entirely free, and regular Person-to-Person (P2P) money transfers between individuals will not attract any charges.
Furthermore, the proposed fee is levied strictly on merchants, not consumers.
If you buy items worth Rs 5,000, you only pay Rs 5,000 at checkout, though the business may absorb a small processing fee.
This proposal aims to create a sustainable revenue model for banks and payment apps maintaining massive UPI infrastructure.
While the 0.4% rate and specific caps for higher-value payments are still under active consultation and review, the zero-fee structure for low-value retail transactions is designed to protect micro-payments and promote financial inclusion across India.
