UPI Charges From October 2026: What You Need to Know
Will UPI payments become chargeable from October 2026? This question is creating considerable confusion among UPI users across India. Messages circulating on social media suggest that people may have to pay charges for using UPI from October. The reality is more specific. The Government of India has clarified that ordinary consumers will not be charged for making UPI payments , and person-to-person (P2P) UPI transactions will remain free . The new framework relates primarily to Merchant Discount Rate (MDR) on certain higher-value person-to-merchant (P2M) transactions . What Is Changing? Under the framework announced in September 2026, P2P transactions remain completely free , irrespective of the transaction value. The change concerns P2M transactions above ₹2,000 —that is, when an individual pays a merchant using UPI. According to the Government's September 15 clarification, an MDR of 0.4% applies to eligible P2M transactions above ₹2,000, with a maximum MDR of ₹300 for ...