UPI AutoPay: Will you now pay extra for OTT, SIP and bill payments? What new MDR rules say

UPI AutoPay payments for OTT subscriptions, bills and SIPs remain outside the new prescribed MDR framework. Here's what the latest rules mean for users.

With the new Merchant Discount Rate (MDR) framework coming into effect for certain high-value UPI merchant payments, users may wonder whether recurring payments made through UPI AutoPay will also attract additional charges.

Automated recurring payments made through UPI mandates are not covered by the prescribed MDR framework, meaning payments such as utility bills, OTT subscriptions and mutual fund instalments will not attract the new 0.4% MDR merely because they exceed ₹2,000.

UPI AutoPay allows users to create an electronic mandate that authorises a merchant or service provider to automatically collect recurring payments from their linked bank account. It can be used for expenses including electricity and mobile bills, EMIs, insurance premiums, OTT subscriptions and mutual fund payments. NPCI describes AutoPay as a facility for recurring e-mandates through UPI-enabled apps.