Archive · 16 Sep 2026
UPI’s 0.4% MDR From October 15: Who Pays?
The article talks about a possible 0.4% fee on UPI payments from October 15.
This fee is called a merchant discount rate, or MDR.
The quoted expert says shops and payment-service providers should pay it.
The expert believes these businesses benefit from offering UPI payments.
The money could help support safer online payments.
It could also help with transparency and handling customer complaints.
The expert says it may help prevent fraud.
The article does not say that customers will directly pay the charge.
A proposed 0.4% merchant discount rate on UPI transactions is discussed as starting October 15.
The quoted expert says traders, intermediaries, or service providers should bear the cost.
The charge is described as supporting security, transparency, complaint redressal, and fraud prevention.
The expert says providers would bear the expense because they profit from offering the payment service.
The proposal is presented as a way to sustain UPI, which the expert calls a highly convenient payment method.
- Who
- Traders, intermediaries, and payment-service providers are identified as the parties expected to bear the cost; the Reserve Bank of India is mentioned as the regulator.
- What
- A proposed 0.4% merchant discount rate for UPI transactions.
- When
- From October 15, according to the headline.
- Where
- In India’s UPI and online-payment system.
- Why
- The quoted expert says the cost could support security, transparency, complaint redressal, fraud prevention, and the sustainability of the payment service.
- Proposed charge
- 0.4% MDR
- Start date
- October 15
- Expected payer
- Traders, intermediaries, or payment-service providers
- Stated purpose
- Supporting security, transparency, complaint redressal, and fraud prevention
- Regulator mentioned
- Reserve Bank of India
- Payment system
- Unified Payments Interface