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Paying For Insurance, Mutual Fund SIPs, Or OTTs Via UPI? Here's What Changes From Oct 15
NDTV Profit 1 hr ago·16 Sept 2026, 12:13 pm
Starting October 15, the Reserve Bank of India is rolling out new rules for paying for insurance, mutual funds, and Over-the-Top (OTT) services using UPI. The key change is that recurring payments, such as Mutual Fund SIPs, will remain exempt from Merchant Discount Rate (MDR) charges. However, for one-time payments above Rs 2,000, a nominal fee of 1.5% will apply. This move aims to make small-value transactions more viable for merchants while ensuring the system remains sustainable.
For investors, this primarily impacts how you manage your recurring investments. Since SIPs are recurring, you can continue to invest without worrying about extra transaction costs. The new charges will only apply if you make lump-sum investments over Rs 2,000. This shift could slightly increase the cost of large, one-time investments but leaves the most popular investment method, SIPs, unchanged. It is a small administrative tweak rather than a major financial shift.
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