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UPI Charges From October 15: Government to Monitor 0.4% MDR to Prevent Merchant Pass-Through
The government is ensuring that the 0.4% fee levied on UPI transactions over ₹2,000 is not passed on to customers.
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“UPI Charges From October 15: Government to Monitor 0.4% MDR to Prevent Merchant Pass-Through”
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18 Sep 2026
With increasing fears of the introduction of charges on UPI transactions, the government is now trying to ensure that the 0.4% Merchant Discount Rate (MDR) charge on UPI transactions above ₹2,000 does not fall on customers.
There will be a charge of 0.4% on all UPI transactions above ₹2,000 from October 15th. On Wednesday last week, it was clearly mentioned by merchants that they would pass the burden to their customers.
Senior government officials have said that talks are going on to come to an understanding between the merchants and the payment aggregators for stopping this. The government is in touch with both the merchants and payment aggregators in this regard.
