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Lenders Face ₹5 Fee on Manual UPI Loan Payments; Autopay Remains Free
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CNBC TV18•23-09-2026, 17:03
Lenders Face ₹5 Fee on Manual UPI Loan Payments; Autopay Remains Free
- •NPCI's new UPI MDR framework introduces a ₹5 charge for lenders on manual UPI loan repayments exceeding ₹2,000, effective October 15.
- •Loan installments collected via UPI Autopay and other recurring mandates will not incur any MDR.
- •The ₹5 charge is a flat fee, significantly lower than the standard 0.40% MDR that would apply to other eligible transactions above ₹2,000.
- •The payment method is crucial; lenders with high Autopay collections will have a different cost impact than those relying on one-off manual payments.
- •NPCI has mandated that the ₹5 ecosystem charge cannot be passed on to consumers, and UPI apps are barred from adding extra fees.
Key Questions Answered
For a one-off manual UPI payment above ₹2,000 in the debt-collection category, a flat fee of ₹5 per transaction is charged to lenders.
No, loan instalments collected through UPI Autopay and other recurring mandates like utility bills and insurance premiums will not attract any prescribed MDR.
No, ordinary consumers do not pay any direct charges, and banks are strictly barred from passing the ecosystem cost or adding convenience fees on UPI apps.
