Archive · 15 Sep 2026
UPI AutoPay Exempt From New MDR Charges, Clarification Says
Starting October 15, 2026, some UPI payments may have a small merchant charge called MDR.
But automatic payments set up through UPI AutoPay will not have this prescribed charge.
This includes recurring mutual fund SIPs, insurance subscriptions, utility bills and OTT subscriptions.
A one-time payment for a mutual fund or another capital-market investment is treated differently.
It can have an MDR of 0.02%, with a maximum charge of ₹300.
Insurance payments above ₹2,000 have a flat ₹5 MDR.
Regular eligible merchant payments above ₹2,000 may have a 0.4% MDR.
The key difference is whether the payment is an automatic recurring mandate or a regular one-time payment.
UPI AutoPay and other automated recurring mandates will not attract the prescribed MDR from October 15, 2026.
Mutual fund SIPs processed through UPI Mandates can continue without the new MDR charge.
One-time capital-market UPI payments, including mutual fund purchases, will attract 0.02% MDR, capped at ₹300.
Insurance premium payments above ₹2,000 will carry a flat MDR of ₹5 per transaction.
Regular eligible P2M payments above ₹2,000 may attract 0.4% MDR, while OTT subscriptions and utility bills paid through AutoPay remain unaffected.
- Who
- UPI users, mutual fund investors, insurers, investment platforms and other eligible merchants are affected by the framework; the clarification was issued by the National Payments Corporation of India.
- What
- The UPI MDR framework distinguishes between automated recurring mandates, one-time capital-market payments, insurance premiums and regular merchant payments.
- When
- The changes are stated to take effect on October 15, 2026.
- Where
- The framework applies to eligible UPI person-to-merchant transactions and UPI-based payments to regulated capital-market entities and insurers.
- Why
- The framework sets different MDR treatment according to the payment type and processing method, while excluding automated recurring UPI mandates from the prescribed charges.
- UPI AutoPay
- No prescribed MDR for automated recurring payments.
- Mutual fund SIP via AutoPay
- Recurring SIP debits continue without the new MDR charge.
- One-time capital-market payment
- 0.02% MDR, capped at ₹300.
- Insurance payment above ₹2,000
- Flat MDR of ₹5 per transaction.
- Regular eligible P2M payment above ₹2,000
- 0.4% MDR.
- P2M payment of ₹75,000 or more
- 0.4% MDR, capped at ₹300.
- Unaffected recurring payments
- UPI AutoPay payments for OTT subscriptions and utility bills remain outside the prescribed MDR framework.