Eligible UPI merchant payments above ₹2,000 reportedly face a 0.4% fee from October 15, 2026

Inc42 reports that eligible person-to-merchant UPI transactions above ₹2,000 will attract a 0.4% merchant discount rate (MDR), capped at ₹300, from October 15, 2026. The outlet says NPCI MD and CEO Dilip Asbe sees a market-driven model as necessary to fund growing cybersecurity, infrastructure and scaling costs. Asbe expects the framework to generate ₹13,000–₹15,000 crore in its first year, while 96% of UPI transactions by volume will remain outside it. He also says banks and fintechs need to keep investing in AI-led cybersecurity as threats grow more sophisticated.