UPI MDR Scare: Are Your ₹2,000 Payments Still Free?

Rumours claimed GST on UPI MDR would make payments costlier. NPCI clarified: MDR only applies to merchant payments above ₹2,000. Transactions up to ₹2,000 stay at zero MDR and zero GST — no change for most users.

Here's what happened: NPCI clarified that MDR on UPI applies only to person-to-merchant transactions exceeding ₹2,000 — not to everyday small payments.. Transactions up to ₹2,000 carry zero MDR, which means zero GST applies to them — the viral fear of UPI becoming costlier has no factual basis.. Small merchants and daily consumers are unaffected; the MDR-plus-GST discussion is relevant only for larger merchant transactions above the ₹2,000 threshold..

What you should do: Check your UPI payment amounts — if you regularly pay under ₹2,000 per transaction, you owe nothing extra and your routine is unchanged.. Ignore viral forwards claiming UPI will become chargeable; verify any payment-related news directly on NPCI's official website or RBI's consumer portal before reacting.. If you run a small business accepting UPI, confirm your payment service provider is not levying any MDR on sub-₹2,000 transactions — it is not permitted..

MDR on UPI was waived by the government for most transactions years ago. Any app or merchant charging you a 'UPI convenience fee' below ₹2,000 is doing so without a valid MDR basis — you can dispute it.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.