Archive · 17 Sep 2026
Shivakumar Calls for Nationwide Fight Against UPI MDR
Karnataka Chief Minister D K Shivakumar wants people across India to oppose a new UPI charge.
The charge is called the Merchant Discount Rate, or MDR.
It will be 0.4 per cent for some purchases above Rs 2,000.
The rule is scheduled to begin on October 15.
Shops and other merchants, not customers, will pay the charge.
For transactions of Rs 75,000 or more, the charge cannot exceed Rs 300.
Sending money from one person to another will still be free.
Purchases up to Rs 2,000 will also remain free.
D K Shivakumar urged the entire country to oppose the Centre’s planned UPI Merchant Discount Rate.
A 0.4 per cent MDR will apply from October 15 to eligible person-to-merchant UPI transactions above Rs 2,000.
The charge will be paid by merchants rather than consumers.
The MDR will be capped at Rs 300 for transactions of Rs 75,000 or more.
Person-to-person transfers and merchant transactions up to Rs 2,000 will remain free.
- Who
- Karnataka Chief Minister D K Shivakumar, the Congress, the Centre, merchants and UPI users.
- What
- A 0.4 per cent Merchant Discount Rate will be introduced for eligible person-to-merchant UPI transactions above Rs 2,000.
- When
- The policy is scheduled to begin on October 15; Shivakumar made the remarks on Wednesday.
- Where
- Shivakumar spoke to reporters in Bengaluru, while calling for a countrywide response.
- Why
- Shivakumar said the issue affects the nation and that the Congress would fight to protect common people’s interests.
- MDR rate
- 0.4 per cent
- Covered transactions
- Eligible person-to-merchant UPI transactions above Rs 2,000
- Start date
- October 15
- Who pays
- Merchants, not consumers
- Maximum charge
- Rs 300 for transactions of Rs 75,000 or more
- Transactions remaining free
- Person-to-person transfers and merchant transactions up to Rs 2,000