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UPI MDR: Will You Pay Extra for EMI Payments? Who Bears the Cost?
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News18•26-09-2026, 06:25
UPI MDR: Will You Pay Extra for EMI Payments? Who Bears the Cost?
- •UPI MDR will not apply to payments below Rs 2000 or person-to-person transfers.
- •For loan repayments and EMIs above Rs 2000 made via UPI, a flat MDR of Rs 5 will be charged per transaction.
- •The Rs 5 MDR for EMI payments will be borne by the lending bank, NBFC, or their recovery agency, not the customer.
- •Customers will not pay any extra amount from their pocket for monthly EMI payments through UPI.
- •UPI Autopay or e-mandate collections for EMIs, even if over Rs 2000, will not incur the Rs 5 MDR charge.
Key Questions Answered
No, customers will not have to pay a single extra penny from their pocket every month when paying an EMI through UPI apps.
Under the debt collection category, a flat MDR of Rs 5 has been set for every manual UPI loan repayment transaction exceeding Rs 2,000.
No, if you have set up UPI Autopay or e-mandate for your EMI, the Rs 5 MDR will not apply to Autopay collections.
