The record
Written from the 2 reports below. Nothing here is unsourced.
- A Merchant Discount Rate (MDR) may be applied to certain UPI merchant payments above ₹2,000 starting October 15, 2026.
- MDR will apply only to merchant payments, not to person-to-person (P2P) transfers.
- The report explains how MDR differs from existing fees on ATM withdrawals, cheques, SMS and other banking services.
- Understanding the MDR rule matters because it affects the cost of large UPI payments for merchants and customers.
What to watch next
- Final confirmation of which merchant categories will face the MDR from October 15, 2026.
- Whether the MDR is borne by merchants or passed on to customers.
- Any changes to other bank charges on ATM, cheque and SMS services.
What changed2
Every report on this story, newest first. Times are when each outlet published.
Why it matters3
Who is affected first and what likely follows, with a direction and a horizon. Extracted from the reports, never invented.
- UPI Merchants increased transaction costs· longer
- Banks and Payment Processors new revenue stream· longer
- Consumers potential price pass through· longer
Coverage1
2 reports
Indian-language2
All filed from IndiaSingle origin
Named India · Unified Payments Interface
The 2 reports are listed beside the record.
Ask this story
Answers cite the reports above, or say they can't.