UPI MDR Regime Explained: Here’s What Will Be Charged After Oct 15

India’s ubiquitous UPI payment system is set for a significant change from October 15, with the introduction of a merchant discount rate (MDR) on select transactions. Under the new framework, merchants will be charged an MDR of 0.4% on person to merchant (P2M) UPI transactions above ₹2,000. The charge will be capped at ₹300 for transactions worth ₹75,000 or more.