Neutral impactSector
UPI MDR on loan repayments: What charge applies to EMIs and who bears it? Here's what borrowers need to know
Mint 1 hr ago·24 Sept 2026, 5:45 pm
From October 15, the National Payments Corporation of India (NPCI) has introduced a new 5 rupee charge for UPI transactions exceeding 2,000 rupees, specifically for debt collection. This means that loan repayments and EMI collections made via UPI will now attract this fee, marking a shift in how digital payments are structured for credit products.
This change is significant for retail investors as it alters the cost structure for borrowers using UPI for EMIs. While the fee is technically levied on the merchant or bank, it may eventually impact the cost of lending for financial institutions. Investors should monitor how banks and NBFCs adjust their pricing models and pass on these costs to maintain their margins.
Going forward, the key for borrowers will be to understand whether the charge is deducted from their repayment amount or borne by the lending institution. Investors should also watch for any updates on the implementation process and the potential impact on the adoption of digital payment methods for credit products.
Excerpt from Mint
From 15 October, UPI transactions of more than ₹ 2,000 for debt collection, including loan repayments and EMI collections, will attract a ₹ 5 MDR. The charge is on the merchant side, not the borrower. Here’s how it applies to EMIs, AutoPay and credit-linked UPI payments. With UPI MDR set to apply from 15 October 2026,…Read the original at Mint
Key takeaways
- Category: Sector.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
