UPI MDR Is Back: Will Your Loan App Bill You?

UPI transactions above ₹2,000 on merchant QR codes may attract a small MDR fee. Your SIP amount won't be cut, but fintech lenders and loan apps disbursing money via UPI could quietly pass this cost to borrowers through higher processing charges.

Here's what happened: UPI MDR is being reintroduced on transactions above ₹2,000 routed through large merchant QR codes, with the cost borne by the merchant or platform — not the end user directly.. AMFI has confirmed mutual fund SIP and lumpsum investments via UPI will invest the full amount — the MDR is not deducted from the investor's transaction.. Fintech lenders, loan apps, and BNPL platforms disbursing credit via UPI may face new MDR costs that they could recover by revising processing or convenience fees charged to borrowers..

What you should do: Check your fintech lender's or loan app's fee schedule this month — look for revised 'disbursal fee', 'convenience charge', or 'processing fee' line items that may reflect MDR pass-through.. Compare total loan cost (processing fee + interest) across at least two lenders before accepting a personal loan offer, especially on apps that disburse via UPI.. If you invest in mutual funds via UPI SIP, verify your next statement shows the full invested amount — flag any shortfall immediately to your AMC or platform..

Ask your lender for a written fee breakup before loan disbursal. Any post-MDR increase in 'processing' or 'convenience' charges must appear in the revised Key Fact Statement — lenders cannot charge fees not disclosed there.