UPI MDR: Can Rs 6,000 be split into three Rs 2,000 payments? No daily cap

From October 15, 2026, UPI payments above Rs 2,000 made to large merchants will attract a Merchant Discount Rate (MDR) of 0.4%. However, the National Payments Corporation of India (NPCI) reportedly does not currently plan to introduce a separate daily limit on repeated UPI payments made to the same merchant.Such a restriction, if in place, could prevent businesses from breaking up larger payments into multiple transactions of Rs 2,000 or less.No daily cap on UPI right nowUnder the framework that will take effect from October 15, regular merchant UPI transactions above Rs 2,000 will attract a 0.4% merchant discount rate, with the charge capped at Rs 300 for transactions of Rs 75,000 or more.For example, a merchant receiving a single UPI payment of Rs 6,000 would incur an MDR of Rs 24.However, according to an ET report, instead of making one payment, the merchant could ask the customer to make…