0.4% Merchant Discount Rate will apply to UPI merchant payments above ₹2,000 from October 15, 2026.
Person-to-person transfers and transactions under ₹2,000 remain exempt.
Banks have been advised to stop merchants from passing the fee on to customers.
A dedicated fund will use 5% of MDR collections to promote digital adoption.
The move has prompted political criticism, with Rahul Gandhi alleging American pressure and the BJP calling that claim fake news.
A quick read on shared facts, changing details, and different emphasis.
All of the reporting agrees that the new charge is a 0.4% MDR on UPI merchant payments above ₹2,000 and that person-to-person transfers remain free. The coverage also agrees that smaller payments are exempt and that the change takes effect from October 15, 2026.
The main disputed point in the available coverage is the political reaction, including allegations of outside pressure and claims of fake news. The reporting does not fully settle how the fee will be passed through in every merchant category beyond the stated guidance to banks.
Swipe through the perspectives. Labels describe coverage framing, not truth or quality.
The neutral coverage focuses on the mechanics of the change: a 0.4% MDR on UPI merchant payments above ₹2,000, with person-to-person transfers and smaller payments exempt. It also explains that the policy is tied to long-term ecosystem sustainability, cybersecurity, infrastructure investment, and digital adoption. One report frames the change as a FAQ-style clarification of who pays and what changes for users. Another short update simply lists the fee and effective date alongside other news.
The mixed coverage combines the policy announcement with the surrounding political reaction. It says the government has introduced the fee on merchant UPI transfers above ₹2,000, ending six years of fully free UPI payments, while individual consumers and small-value payments remain exempt. The same reporting notes political criticism, including Rahul Gandhi’s allegation of American pressure and the BJP’s response that the claim is fake news. It also mentions varied flat fees and percentage caps in specific sectors.
The latest eight dated reports, from earliest to newest.
The Policy Edge
The New Indian Express
MillenniumPost
The Hans India
Attributed summaries from official party channels. These are claims, not independent reporting or fact checks.
Scan each source take, then open the original article.
The Hindu reports that the National Payments Corporation of India has introduced a 0.4% Merchant Discount Rate on UPI merchant payments exceeding 2,000 rupees, effective October 15, 2026. According to the publication, person-to-person transactions and small vendor payments are exempt, and banks have been advised to prevent merchants from passing fees onto customers. The report also highlights that a dedicated fund will be established using 5% of MDR collections to promote digital adoption.
The Times of India details the frequently asked questions released by the NPCI regarding the new 0.4% Merchant Discount Rate on person-to-merchant UPI payments above 2,000 rupees. The source reports that ordinary consumers and person-to-person transfers will continue to be free of charge, and small-value transactions under 2,000 rupees are fully protected. It highlights that the policy is intended to support long-term ecosystem sustainability and infrastructure investment without raising consumer prices at stores.
The Economic Times outlines the newly released FAQ regarding the NPCI's 0.4% Merchant Discount Rate on UPI person-to-merchant transactions exceeding 2,000 rupees, taking effect on October 15, 2026. The source reports that peer-to-peer transfers and transactions under 2,000 rupees remain entirely free, while the collected fees will support ecosystem resilience, cybersecurity, and infrastructure. It details that the policy aims to make UPI self-sustaining without impacting everyday consumers.
Deccan Herald provides a brief evening news update noting that the National Payments Corporation of India has announced a 0.4 per cent fee on UPI merchant payments exceeding 2,000 rupees, set to take effect on October 15. The summary mentions that the service will remain free for person-to-person transactions alongside other national and local news items. The publication focuses primarily on delivering a headline roundup of major daily events.
The government announced a new transaction fee framework for Unified Payments Interface merchant payments, concluding nearly six years of a fully free system for businesses. Starting October 15, person-to-merchant transactions exceeding two thousand rupees will incur a merchant discount rate of zero point four percent, while person-to-person transfers and smaller merchant payments remain completely free. The Finance Ministry stated that the commission will be distributed among ecosystem partners and emphasized that app providers and banks must ensure merchants do not pass these costs directly to consumers.
India's National Payments Corporation convened its steering committee to deliberate on merchant fee rates and structures for large Unified Payments Interface transactions following a government notification. The consultation explores implementing a zero point four percent merchant discount rate on transactions above two thousand rupees for larger businesses while keeping small vendors and peer-to-peer transfers exempt. Industry analysts estimate that the new revenue pool could generate billions annually for the digital payments ecosystem, helping address long-term financial sustainability concerns.
The Hans India reports that the Union government has introduced a 0.4 per cent Merchant Discount Rate on person-to-merchant UPI payments exceeding Rs 2,000 starting October 15, while exempting everyday person-to-person transfers and small transactions. The report notes that the move sparked political sparring, with Congress leader Rahul Gandhi alleging the levy is a surrender to American pressure and the BJP accusing the opposition of spreading fake news. According to the National Payments Corporation of India, the charges will support infrastructure resilience and cybersecurity.
ThePrint reports that the government has introduced a 0.4 percent fee on merchant UPI transfers above 2,000 rupees starting October 15, ending six years of fully free UPI payments. The publication notes that individual consumers and small-value payments remain exempt, while political reactions emerged with opposition leader Rahul Gandhi alleging surrender to American pressure and the BJP accusing the Congress of spreading fake news. It further outlines varied flat fees and percentage caps across specific sectors.