The record
Written from the 2 reports below. Nothing here is unsourced.
- A new Merchant Discount Rate (MDR) framework imposes a 0.4% charge on eligible UPI merchant transactions above ₹2,000.
- The government has clarified that UPI AutoPay recurring payments are excluded from this new MDR framework.
- Recurring payments such as OTT subscriptions, utility bills, insurance premiums and mutual fund SIPs will not attract the 0.4% charge merely for exceeding ₹2,000.
- Person-to-person UPI payments remain free regardless of the amount, and merchants transactions up to ₹2,000 also stay outside the MDR framework.
- Banks have been advised to ensure merchants do not pass the MDR cost on to customers, so the charge matters mainly within the merchant payment ecosystem.
What to watch next
- Whether banks and UPI apps comply with the advisory against passing MDR costs or platform fees on to customers.
- How merchants handling high-value UPI payments above ₹2,000 absorb or adjust to the 0.4% MDR.
- Any future clarification on whether UPI AutoPay recurring payments could be brought under the MDR framework.
What changed2
Every report on this story, newest first. Times are when each outlet published.
Why it matters2
Who is affected first and what likely follows, with a direction and a horizon. Extracted from the reports, never invented.
- UPI AutoPay users fee protection· immediate
- Merchants and payment aggregators compliance clarity· days
Coverage1
2 reports
English national2
All filed from IndiaSingle origin
Named India · Government of India · National Payments Corporation of India · UPI Steering Committee
The 2 reports are listed beside the record.
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