Introduction of MDR on large value transactions to strengthen UPI's long-term sustainability: RBI

The introduction of Merchant Discount Rate (MDR) on large-value UPI transactions is an important step towards strengthening the long-term sustainability of India's digital payments ecosystem, the Reserve Bank of India said on Tuesday (September 15, 2026) following a proposal to levy a 0.4% fee on transactions exceeding ₹2,000.

"It will help UPI in continuing to scale, innovate and serve consumers and businesses across the country," the Reserve Bank of India (RBI) said in a post on X.