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TopOngoing2 days ago

Who Pays MDR on UPI?

NPCI caps MDR at ₹300 above ₹75,000.

01 / What happened

What happened

NPCI circular effective 15 Oct 2026 caps UPI MDR.

NPCI has capped UPI MDR at ₹300 for transactions above ₹75,000.

The 0.4% P2M rate applies above ₹2,000, with 97.5% of transactions staying free.

Yes Bank leads payer share with over 50% of the revenue slice.

MDR Cap
₹300 above ₹75,000
Monthly Pool
₹2,400 crore max
Timeline

Timeline

  • 16 Sep 2026 — The Hindu reports
  • 15 Oct 2026 — Effective
02 / Why it matters

Why it matters for me

Merchants pay at most ₹300 on large UPI orders.

Money

Price-change · Direct · High

Merchants

High-value UPI transactions above ₹75,000 now face a ₹300 MDR cap.

Money

Revenue-change · Direct · High

Fintech Banks

TPAPs PhonePe (46%) and Google Pay (32%) dominate UPI revenue share.

03 / The one thing

What to remember

The one thing
UPI MDR now capped at ₹300 above ₹75,000.

UPI MDR capped at ₹300 — who gains most?

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Verified sources (2)

Evidence behind the crack
Reporting/The Hindu

Who has to pay MDR on UPI

PrimaryPublished Sep 16, 2026Accessed Sep 17, 2026
Official/NPCI

MDR FAQs

CorroboratingPublished Sep 15, 2026Accessed Sep 17, 2026

Claims and linked sources

4 claims
NumberVerifiedHigh confidence

UPI MDR capped at ₹300 for transactions above ₹75,000 from 15 Oct 2026.

Linked evidence
NumberVerifiedHigh confidence

UPI P2M transactions above ₹2,000 attract a 0.4% MDR rate.

Linked evidence
NumberVerifiedHigh confidence

MDR revenue splits 40% payer bank, 30% merchant bank, 20% TPAP, 10% PSP.

Linked evidence
FactVerifiedMedium confidence

Yes Bank holds over 50% of payer bank share in UPI MDR revenue.

Linked evidence
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