UPI Payments Above ₹2,000 To Large Merchants Will Attract MDR Charges After Diwali: NPCI

NPCI has announced that Merchant Discount Rate (MDR) charges will apply on UPI payments above ₹2,000 made to large merchants, with the change set to kick in after Diwali.

UPI transactions have so far largely been free of such charges for both consumers and most merchants, a key reason behind its explosive adoption across India. The new rule is aimed specifically at high-value transactions with larger merchants, while everyday, smaller UPI payments between individuals and most small merchants are expected to remain unaffected.

For shoppers, this means no real change in how they use UPI for day-to-day payments. Large merchants accepting bigger-ticket UPI payments, however, may see a small processing cost going forward, similar to the charges already applied on credit and debit card transactions. Full details on which merchant categories and transaction types will be covered are expected to be clarified closer to the rollout date.