UPI charges above ₹2,000 from 15 October 2026: do you pay?
A 0.4% merchant fee on UPI payments above ₹2,000 starts on 15 October 2026. Customers pay nothing. What is charged, what stays free, and RuPay credit cards.
From 15 October 2026, shops and businesses pay a fee, called the merchant discount rate or MDR, on some UPI payments they receive. The headlines about "UPI charges" have worried a lot of people. Here is who pays what.
Customers pay nothing
The fee is charged to the merchant. Merchants are not allowed to pass it on to you, and UPI apps may not add platform fees. If a shop asks for extra money for paying by UPI, that is against the rules.
What is charged
- 0.4% on person-to-merchant UPI payments above ₹2,000, capped at ₹300 a payment. The cap is reached at ₹75,000.
- Railways, telecom, insurance, fuel and utility bills: a flat ₹5 a payment.
- Mutual funds and broking: 0.02%, capped at ₹300.
What stays free
- Every payment of ₹2,000 or less.
- Sending money to another person.
- Small merchants receiving up to ₹1 lakh a month through a QR code.
RuPay credit cards and credit lines on UPI
Payments from a RuPay credit card linked to UPI, or from a pre-sanctioned credit line on UPI, are outside this 0.4% fee. They follow the charges for the credit product, as card payments always have. Your card's rewards and terms do not change because of this rule.
The court case
On 28 September 2026 the Supreme Court refused to stay the fee and asked the Centre, RBI and NPCI to reply within four weeks. So it starts on 15 October as planned, but could still change.
What might change for you
Some merchants may nudge you towards payments under ₹2,000, or towards cards, for large bills. Prices should not change. If you see a UPI surcharge, you can complain to your UPI app and the merchant's bank.
Sources: Business Standard: UPI MDR explained, SCC Online: NPCI FAQs on UPI MDR, Business Today: Supreme Court refuses stay.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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