NPCI announces MDR for UPI; merchant transactions above Rs 2,000 to attract 0.4% charge

Economic Times - Sep 15, 2026

While NPCI has not specified a threshold based on the size of a merchant’s turnover, it said in its announcement that vendors operating under the person-to-person merchant (P2PM) category will “enjoy a mandatory zero MDR”. Merchants in this category, typically small shopkeepers, street vendors and local businesses, are classified as those receiving less than Rs 1 lakh per month in their accounts through UPI.

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