Rs 300 Cap: Why UPI Payment Beyond Rs 75,000 Won't Keep Getting More Expensive

The new framework, announced by the National Payments Corporation of India (NPCI), will come into effect from October 15, 2026

UPI may no longer be entirely free for large merchant payments, but the new rules come with an important ceiling: even if you make a UPI payment worth Rs 75,000, the Merchant Discount Rate (MDR) will not go beyond Rs 300.

The new framework, announced by the National Payments Corporation of India (NPCI), will come into effect from October 15, 2026. Under it, a 0.4 per cent MDR will apply to specified person-to-merchant (P2M) UPI transactions above Rs 2,000. For transactions of Rs 75,000 and above, the charge will be capped at Rs 300.