{"id":24853,"date":"2026-09-16T05:16:03","date_gmt":"2026-09-16T05:16:03","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=24853"},"modified":"2026-09-16T05:16:03","modified_gmt":"2026-09-16T05:16:03","slug":"to-strengthen-upis-long-term-sustainability-rbi-backs-0-4-mdr-on-transactions-above-rs-2000","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=24853","title":{"rendered":"&#8216;To strengthen UPI&#8217;s long-term sustainability&#8217;: RBI backs 0.4% MDR on transactions above Rs 2,000"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-134278395,imgsize-70514,width-400,height-225,resizemode-4\/rbi-on-upi.jpg\" alt=\"'To strengthen UPI's long-term sustainability': RBI backs 0.4% MDR on transactions above Rs 2,000\" title=\"The RBI said the move would help UPI &quot;continue to scale, innovate and serve consumers.&quot;\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"The RBI said the move would help UPI &quot;continue to scale, innovate and serve consumers.&quot;\">The RBI said the move would help UPI &#8220;continue to scale, innovate and serve consumers.&#8221;<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>NEW DELHI: The <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/reserve-bank-of-india\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\" target=\"_blank\" rel=\"noopener\">Reserve Bank of India<\/a> has backed the introduction of a Merchant Discount Rate (MDR) on large-value UPI transactions, saying the move would help strengthen the long-term sustainability of India\u2019s digital payments ecosystem.<span class=\"id-r-component br\" data-pos=\"4\"\/>The National Payments Corporation of India (NPCI) has notified an MDR of 0.4% on person-to-merchant (P2M) UPI transactions above Rs 2,000, with the new charges set to take effect from October 15, 2026. Person-to-person (P2P) UPI transactions will continue to remain free.<span class=\"id-r-component br\" data-pos=\"6\"\/>The RBI said the move would help UPI \u201ccontinue to scale, innovate and serve consumers and businesses across the country\u201d.<span class=\"id-r-component br\" data-pos=\"8\"\/>\u201cIt will help UPI in continuing to scale, innovate and serve consumers and businesses across the country,\u201d the RBI said in a post on X on Tuesday.<span class=\"id-r-component br\" data-pos=\"12\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">No UPI charges for customers<\/span><span class=\"id-r-component br\" data-pos=\"14\"\/>The government has clarified that the new MDR is a charge within the merchant payment ecosystem and will not be directly imposed on customers.<span class=\"id-r-component br\" data-pos=\"16\"\/>\u201cCustomers will not be required to pay any charge when making such payments through UPI,\u201d the finance ministry said in a statement quoting the NPCI circular issued on Tuesday.<span class=\"id-r-component br\" data-pos=\"18\"\/>\u201cMDR is a charge within the merchant payment ecosystem. It is not a charge on customers making UPI payments,\u201d the statement added.<span class=\"id-r-component br\" data-pos=\"21\"\/>The RBI said all UPI transactions, both P2P and P2M, will remain free for users. P2M transactions of up to Rs 2,000 will also continue to remain free for merchants.<span class=\"id-r-component br\" data-pos=\"23\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">How much will merchants pay?<\/span><span class=\"id-r-component br\" data-pos=\"25\"\/>Under the new structure, merchants will pay an MDR of 0.4% on P2M UPI transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction.<span class=\"id-r-component br\" data-pos=\"27\"\/>MDR is essentially a fee charged to merchants for accepting digital payments through a particular channel. <!-- -->It is generally calculated as a percentage of the transaction value, with the applicable amount deducted before the remaining payment is transferred to the merchant.<span class=\"id-r-component br\" data-pos=\"31\"\/>The new rates will come into effect on October 15, giving acquiring banks, payment aggregators, fintech companies and corporate accounting platforms time to update their software and billing systems.<span class=\"id-r-component br\" data-pos=\"33\"\/>There will be no impact on UPI transactions of up to Rs 2,000, which account for more than 95% of P2M UPI transactions by volume.<span class=\"id-r-component br\" data-pos=\"36\"\/>The government has said the move is intended to keep everyday digital payments free while creating a sustainable revenue model for the UPI ecosystem.<span class=\"id-r-component br\" data-pos=\"38\"\/>The RBI said a fair distribution of MDR among different participants in the payments ecosystem would support continued investment in technology, infrastructure and payment acceptance networks.<span class=\"id-r-component br\" data-pos=\"41\"\/>\u201cThis, in turn, can enable wider UPI acceptance, deepen the customer base and support sustained growth in transaction volumes,\u201d the RBI said.<span class=\"id-r-component br\" data-pos=\"44\"\/>\u201cRBI remains committed to ensuring that UPI continues to be safe, seamless, affordable, and accessible, while supporting the long-term sustainability and growth of India&#8217;s world-class digital payments ecosystem,\u201d it added.<span class=\"id-r-component br\" data-pos=\"46\"\/>UPI is operated by the National Payments Corporation of India (NPCI), an initiative of the RBI and the Indian Banks\u2019 Association. The platform enables real-time transfers between individuals and payments directly to merchants.<span class=\"id-r-component br\" data-pos=\"48\"\/>UPI is now accepted in 11 countries, with Uzbekistan the latest addition. The other countries are Singapore, the UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia and Greece.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/to-strengthen-upis-long-term-sustainability-rbi-backs-0-4-mdr-on-transactions-above-rs-2000\/articleshow\/134278051.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The RBI said the move would help UPI &#8220;continue to scale, innovate and serve consumers.&#8221; NEW DELHI: The Reserve Bank of India has backed the introduction of a Merchant Discount Rate (MDR) on large-value UPI transactions, saying the move would help strengthen the long-term sustainability of India\u2019s digital payments ecosystem.The National Payments Corporation of India [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24854,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-24853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"The RBI said the move would help UPI &#8220;continue to scale, innovate and serve consumers.&#8221; NEW DELHI: The Reserve Bank of India has backed the introduction of a Merchant Discount Rate (MDR) on large-value UPI transactions, saying the move would help strengthen the long-term sustainability of India\u2019s digital payments ecosystem.The National Payments Corporation of India [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36"],"magazineBlocksPostViewCount":3,"magazineBlocksPostReadTime":3,"magazine_blocks_featured_image_url":{"full":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg",400,225,false],"medium":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg",300,169,false],"thumbnail":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/09\/rbi-on-upi.jpg",150,84,false]},"magazine_blocks_author":{"display_name":"admin","author_link":"https:\/\/koshalsambada.in\/author\/admin"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g","magazine_blocks_category":"<a href=\"#\" class=\"category-link category-link-31\">\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36<\/a>","_links":{"self":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/24853","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24853"}],"version-history":[{"count":0,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/24853\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/media\/24854"}],"wp:attachment":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24853"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24853"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24853"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}