UPI MDR Charge Start Date Notification - Summary
UPI MDR charge start date notification is the official circular issued by National Payments Corporation of India (NPCI) regarding Merchant Discount Rate on Unified Payments Interface transactions. NPCI released this circular in October 2026 to update banks, payment aggregators, and merchants about the revised rollout schedule for transaction charges.
The UPI and Services Steering Committee decided on 13 October 2026 to postpone the rollout of MDR charges, which were scheduled to start from 15 October 2026. The new start date will be announced after Diwali through a separate circular on npci.org.in.
UPI MDR charge start date notification details
The circular specifies these charges and exemptions:
- Transactions between individuals (P2P) remain completely free.
- Merchant payments up to ₹2,000 carry zero charge.
- Small merchants with monthly collections below ₹1 lakh are exempt.
- Eligible merchant payments above ₹2,000 carry a 0.4 percent MDR, capped at ₹300 for payments of ₹75,000 or more.
- Select categories like fuel, utilities, telecom, insurance, and railways have a flat fee of ₹5 for payments above ₹2,000.
- Capital market transactions carry an MDR of 0.02 percent.
UPI New Rule w.e.f 15th October 2026
