New UPI Merchant Discount Rate Starts Oct 15, Peer‑to‑Peer and Auto‑Debit Remain Free

The new merchant discount rate, the fee merchants pay to process Unified Payments Interface transactions, will be applied from October 15. Under this schedule, any UPI payment that involves a direct transfer between two personal accounts will stay free of charge. The same exemption covers auto‑debit transactions, where amounts are pulled automatically on a set schedule. UPI mandates, which are recurring payment instructions authorized by users, will also remain free of the new MDR. All other categories of UPI payments will now be subject to the revised fee structure announced by the regulator.