UPI Payments for Railways and Fuel to Attract Rs 5 MDR
· Business · India Today, Hindustan Times
Under a new Merchant Discount Rate framework taking effect on October 15, 2026, UPI transactions above Rs 2,000 for specific merchant categories will attract a concessional flat rate of Rs 5 per transaction. The flat fee applies to high-value merchant sectors including railways, telecom services, insurance, and fuel, replacing the standard 0.4% percentage-based charge. Consumers will continue to use UPI without paying any transaction fees. Transactions below Rs 2,000 will remain free of MDR for merchants across these categories.
Why it matters
High-value digital merchants like fuel pumps and railway ticketing platforms will save on processing costs while consumer transactions remain free.
Read the original report — India Today
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