Every UPI charge rule tracked here carries a status — current, upcoming, under review or superseded — with its effective date, who it affects and the official source it was verified against.
Read the full UPI rules 2026 guide →Person-to-person UPI transfers carry no UPI charge under the current framework, irrespective of the transfer amount. Bank and app specific limits still apply.
✓ Official source — NPCI UPI circulars · View · Verified 13 October 2026
UPI payments to merchants with a transaction value of ₹2,000 or less continue with no MDR under the current framework.
✓ Official source — NPCI UPI circulars · View · Verified 13 October 2026
Once implemented (originally 15 October 2026, now deferred by NPCI until after Diwali — new date to be notified), specified P2M UPI transactions above ₹2,000 can attract MDR of 0.4%, with a maximum of ₹300 per transaction for transactions of ₹75,000 and above. MDR is a merchant/payment ecosystem charge, not a government tax.
✓ Official source — NPCI UPI circulars · View · Verified 13 October 2026
Eligible small merchants can remain outside MDR under the applicable zero-MDR framework. Eligibility depends on the merchant classification applied by the acquiring bank or payment aggregator — it is not decided by the customer or by transaction size alone.
✓ Official source — NPCI / acquiring bank circulars · View · Verified 13 October 2026
Certain categories — including railways, fuel, agriculture, utilities, telecom, insurance, credit card bill payments and tax payments — are reported to follow a separate or flat charge structure. Exact treatment must be verified against the latest NPCI or bank circular applicable to the transaction.
✓ Official source — NPCI UPI circulars · View · Verified 13 October 2026
| Area | Position before | Position now / upcoming | Effective | Who is affected |
|---|---|---|---|---|
| P2P transfers | Free | Free — unchanged | Current framework | All individuals |
| Merchant payments up to ₹2,000 | No MDR | No MDR — unchanged | Current framework | Customers and merchants |
| Specified merchant payments above ₹2,000 | No MDR | MDR of 0.4%, capped at ₹300 per transaction | Deferred post-Diwali 2026 (originally 15 Oct; new date TBA) | Merchants in specified categories |
| Eligible small merchants | Zero MDR | Can remain outside MDR | Current framework | Merchants classified as eligible small merchants |
| Specified categories (railways, fuel, utilities, telecom, insurance, card bills, tax) | Category treatment | Separate or flat treatment — verify per circular | Verify per circular | Merchants and billers in those categories |
| Income tax framework | Earlier provisions | Applicable provisions of the Income Tax Act, 2025 | 1 April 2026 | All taxpayers |
Statuses and dates are re-checked against the source. Last verified: 13 October 2026. Dates are never changed merely to appear fresh — see the editorial policy.
This page is educational information, not professional tax, legal or financial advice. Rules can change — verify against the latest official notification or consult a qualified professional before acting.