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UPI MDR to Extend to 11 Countries, Impacting International Transactions
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Moneycontrol•24-09-2026, 20:29
UPI MDR to Extend to 11 Countries, Impacting International Transactions
- •The new Merchant Discount Rate (MDR) framework for UPI transactions will apply in the 11 countries where UPI is currently functional, according to Finance Ministry sources.
- •The government is set to implement MDR on select UPI merchant transactions from October 15, with no plans to extend this date.
- •A 0.4 percent MDR will be introduced on specified merchant transactions above Rs 2,000, capped at Rs 300 per transaction.
- •Consumers will not be charged for UPI payments; person-to-person transactions and merchant transactions below Rs 2,000 will remain free.
- •The revised MDR structure aims to create a more sustainable financial model for the UPI ecosystem, with rates decided by the Indian Banks' Association (IBA) in consultation with stakeholders.
Key Questions Answered
The new framework introduces a 0.4 percent MDR on specified merchant transactions above Rs 2,000, subject to a cap of Rs 300 per transaction, while transactions below Rs 2,000 remain free and consumers will not be charged.
The new MDR framework will apply in all 11 countries where UPI is currently functional, including the UAE, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece, and the Maldives.
The rates were decided by the Indian Banks' Association in consultation with stakeholders to create a sustainable financial model, and the government does not plan to extend the October 15 implementation date.
