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UPI MDR: Will UPI Apps start charging platform fee on UPI payments? Know here
Mint 1 hr ago·10 Oct 2026, 9:34 am
The Reserve Bank of India (RBI) has introduced a new Merchant Discount Rate (MDR) for UPI transactions. Starting October 15, merchants will be charged a 0.4% fee for payments exceeding ₹2,000. This charge is capped at ₹300 per transaction, and merchants are prohibited from passing this cost on to customers.
This policy shift is significant for the digital payments ecosystem. It aims to make UPI more financially sustainable for merchants, who have previously borne the cost of transaction fees. For investors, this move could improve the long-term profitability of payment platforms and fintech companies, as these businesses will now have a clearer revenue model.
Investors should monitor how payment apps and fintech firms adapt to this new fee structure. While the cost is borne by merchants, the overall health of the digital payments sector may improve, potentially boosting the valuations of these companies in the long run.
Excerpt from Mint
Consumers will not pay extra for UPI transactions when a new merchant discount rate takes effect on October 15. Merchants will pay a 0.4% fee on qualifying payments above ₹ 2,000, capped at ₹ 300, and cannot pass the charge on to customers. With a new Merchant Discount Rate (MDR) set to apply to certain UPI…Read the original at Mint
Key takeaways
- Category: Stocks.
- 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.
