Who pays for UPI? India’s new MDR reopens an old payments debate

India’s 10-year period of offering Unified Payments Interface (UPI) services without fees will end on October 15, 2026. At that time, a 0.4% Merchant Discount Rate (MDR) will apply to person-to-merchant transactions above Rs 2,000. According to the framework announced by the finance ministry on September 14 and detailed by the National Payments Corporation of India (NPCI), charges will be capped at Rs 300 for payments of Rs 75,000 or more.