Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsUPI handled about 145 billion transactions in April–September 2026, up 27% from 114 billion in the same period a year earlier, according to NPCI figures reported by The Times of India and PTI/Economic Times. The Ministry of Finance’s separate MDR framework, effective October 15, 2026, applies only to specified merchant transactions—not person-to-person transfers—and does not create a fee for customers.
How much did UPI grow in the first half of FY27?
For April through September 2026, UPI transaction volume was about 145 billion, compared with 114 billion in April–September 2025, a 27% increase. The same reports attribute these figures to NPCI. The reported total value rose 20%, to ₹177 lakh crore from ₹148 lakh crore.
Volume and value measure different things: volume counts payments, while value adds up the rupee amount transferred. Because reported value grew more slowly than the number of transactions, the two growth rates should not be treated as interchangeable. The figures are reported half-year totals, not a direct measure of how much an individual user or merchant spent.
What happened in September?
The Times of India reported 24.07 billion UPI transactions in September 2026, 1.7% fewer than August’s 24.5 billion. September transaction value was ₹29.37 lakh crore, down 1.5% from August’s ₹29.82 lakh crore. Average daily transactions, however, were reported at 802 million in September versus 791 million in August. The report notes that August had 31 days and September 30, so the monthly totals alone do not establish a reversal in UPI’s broader growth.
#1 Best Overall
Will UPI payments above ₹2,000 now have a charge?
Not every UPI payment above ₹2,000 is subject to MDR. The Ministry of Finance’s September 15, 2026 release says the framework, starting October 15, applies to specified merchant payments above ₹2,000. It does not apply to person-to-person transfers. Merchant payments up to ₹2,000 remain free under the framework.
The stated rates depend on the merchant transaction category:
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
| Payment category | Stated MDR under the Ministry framework |
|---|---|
| Specified general merchant transactions above ₹2,000 | 0.4%; capped at ₹300 for transactions of ₹75,000 and above |
| Transactions above ₹2,000 in listed essential and thin-margin sectors: railways, telecommunications, insurance, fuel, and agricultural inputs | Flat ₹5 per transaction |
| Capital-market payments related to mutual funds, securities, stockbrokers, and dealers | 0.02%; capped at ₹300 |
These are rates stated in the Ministry’s release. The release describes the framework as applying to specified merchant transactions; the rate table should not be read as a charge on every UPI transfer that exceeds ₹2,000.
Who pays UPI MDR?
MDR is a merchant-side charge within the payments ecosystem, not a tax and not a charge collected by the Government or NPCI, according to the Ministry. The release says MDR is distributed among ecosystem participants, including banks and payment application providers. It also says banks have been advised to prevent merchants from passing MDR on to customers, and that UPI application providers are prohibited from imposing platform fees or hidden charges. These are stated provisions and directions; the release does not independently establish how they are being followed in practice.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallOutdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWho remains exempt from MDR?
- Person-to-person transfers: The Ministry says all P2P UPI transactions remain free, regardless of amount.
- Merchant payments up to ₹2,000: These remain free under the framework.
- Qualifying small merchants: Merchants in the P2PM category receiving up to ₹1 lakh per month through UPI QR retain zero MDR.
The Ministry estimates that approximately 96% of merchant transactions will remain unaffected, with the framework applying to about 4%. Those percentages are government estimates in the release, not independently verified measurements.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why did the government introduce the framework?
The Ministry describes ecosystem sustainability and protection of individuals and small merchants as the policy rationale. It also says an amount equivalent to 5% of total MDR collections will go to a dedicated small-merchant adoption fund. These are features and aims of the announced policy; they do not by themselves demonstrate its eventual effects.
Quick Recap
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Rank #4
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
