No. As of 11 October 2026, India’s official policy says UPI app providers may not charge individuals a platform fee or other charge for making UPI payments. A separate merchant-side MDR framework is scheduled to start on 15 October 2026; it does not make the person paying a UPI fee.
What the UPI fee rules mean for you
The Ministry of Finance says individuals cannot be charged a transaction fee, platform fee or other charge for sending or receiving money through UPI. The Department of Financial Services gives the same answer to the direct question, “Will UPI Apps start charging platform fee on UPI payments?” The answer is no under the official framework current on 11 October 2026. Ministry of Finance statement, 15 September 2026; Department of Financial Services FAQ, 15 September 2026.
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The distinction is who pays and why: MDR is a merchant-side payment-processing charge, while a UPI platform fee would be charged to the individual using an app. The Ministry says app providers are expressly prohibited from imposing platform fees or hidden charges on UPI transactions. It has also advised banks to ensure merchants do not pass MDR on to customers. MDR is not a government tax or a charge collected by the Government or NPCI; the Ministry says it is distributed among payment-ecosystem participants. Ministry of Finance statement, 15 September 2026.
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Merchant MDR framework scheduled for 15 October 2026
The finalized framework is scheduled to take effect on 15 October 2026. Its rates apply to covered merchant transactions, not to a consumer platform fee. The rate depends on transaction type and merchant category:
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| Transaction or merchant category | Stated MDR treatment | Who the charge concerns |
|---|---|---|
| Person-to-person (P2P), any amount | Free | No MDR charge for the individuals sending or receiving money |
| Merchant payments (P2M) up to ₹2,000 | Zero MDR | Merchant-side MDR is not charged; no consumer UPI fee |
| Other covered P2M transactions above ₹2,000 | Standard MDR of 0.4%; for transactions of ₹75,000 or more, capped at ₹300 per transaction | Merchant-side processing charge, not a fee payable by the individual |
| Specified essential and thin-margin sectors above ₹2,000 | Flat ₹5 MDR for sectors identified by the Ministry, including railways, telecommunications, insurance, fuel and agricultural inputs | Merchant-side charge for the specified categories |
| Named capital-market categories | 0.02% MDR, capped at ₹300, for categories including mutual funds, securities, stockbrokers and dealers | Merchant-side charge for the named categories |
| Eligible P2PM small merchants receiving up to ₹1 lakh a month through UPI QR codes | Zero MDR under the stated small-merchant treatment | Merchant eligibility and classification matter |
The rates and commencement date are stated in the Department of Financial Services FAQ, 15 September 2026. The Ministry’s release describes the specified-sector and capital-market treatments and the small-merchant threshold. Ministry of Finance statement, 15 September 2026; Ministry of Finance release, 15 September 2026. The ₹2,000 threshold separates merchant MDR treatment; it is not a threshold above which a UPI user starts paying a transaction fee. A particular shop’s small-merchant status depends on its bank or acquirer classification.
How much of merchant UPI activity is covered?
The Department of Financial Services says more than 95% of P2M UPI transaction volume is at or below ₹2,000. Separately, the Ministry estimates that approximately 96% of merchant transactions remain unaffected and MDR applies to about 4%. These figures describe different measures: the first is the share of P2M volume below the threshold, while the second is the Ministry’s estimate of the share of merchant transactions affected. Neither means that individuals pay a UPI app fee. Department of Financial Services FAQ, 15 September 2026; Ministry of Finance statement, 15 September 2026.
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Why older UPI fee claims can be confusing
An earlier Ministry announcement on 8 August 2026 said merchant MDR would be threshold-based and that consumers would face no charges, but it said the post-amendment MDR decision was still to come. The later 15 September statement and FAQ set out the finalized rates and scheduled start date, so those later documents are the relevant references for the announced framework. Ministry of Finance release, 8 August 2026; Ministry of Finance statement, 15 September 2026; Department of Financial Services FAQ, 15 September 2026.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe Government’s FY 2024–25 incentive scheme is also historical context, not the new MDR schedule. It stated a 0.15% incentive for eligible small-merchant P2M transactions up to ₹2,000, with incentives disbursed to acquiring banks and shared with other ecosystem participants. It described the earlier incentive model; it does not establish that the finalized September 2026 framework will not commence. Government of India scheme announcement, 2025.
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Where to check for changes
This summary reflects official information available on 11 October 2026, four days before the announced commencement date. Later implementation details or amendments could change the position. For updates, check official statements from the Ministry of Finance, the Reserve Bank of India or the National Payments Corporation of India, rather than relying on an unverified claim about a new fee.
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