India's UPI MDR: What changes & why it matters
India will implement a Merchant Discount Rate (MDR) of 0.4% for UPI transactions exceeding ₹2,000, effective October 15, 2026. This marks a shift from the previous zero-MDR policy, which began in 2020, impacting merchants while person-to-person transfers remain free. The change aims to sustain UPI's growth amid its dominance in digital payments, which accounted for 84% of India's volume.