UPI Payments Above ₹2,000 to Cost Merchants 0.4% from October 15; Small Vendors Stay Exempt
The National Payments Corporation of India will levy a 0.4% Merchant Discount Rate on UPI person-to-merchant payments above ₹2,000 from October 15, 2026, while person-to-person transfers and payments up to ₹2,000 remain free. Small merchants earning up to ₹1 lakh a month through UPI QR codes are exempt, and essential sectors such as Railways, telecom and fuel will pay a flat ₹5 per transaction.
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