'To strengthen UPI's sustainability': RBI backs 0.4% MDR on payments above Rs 2,000
The Reserve Bank of India endorsed a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding ₹2,000, effective October 15, 2026. This decision aims to enhance the long-term sustainability of India's digital payments ecosystem, allowing UPI to scale and innovate. Stakeholders in the digital payments sector are expected to adapt to these new charges.