UPI MDR Framework Overview (2026)
The UPI MDR framework as of 2026 is based on the rationalisation announced by the Government of India in December 2019 and effective from January 2020, with subsequent NPCI circulars refining category-specific rates.
Standard P2M Transactions
- Up to ₹2,000: Zero MDR
- Above ₹2,000: 0.4% MDR (capped at ₹300)
Essential/Thin-Margin Sectors
Fuel, insurance, telecom, railways, fertiliser: ₹5 flat MDR for transactions above ₹2,000.
Capital Market
Stock brokers, mutual funds: 0.02% MDR (max ₹300 per transaction).
Small Merchant / Zero-MDR
Eligible small merchants: Zero MDR for all UPI transactions.
P2P Transfers
Zero MDR — no charges on personal transfers.
GST on MDR
18% GST applies on the MDR amount (not the transaction value) wherever MDR is non-zero.
Information verified as of 18 September 2026. View sources →