MDR on UPI: What stays free, what attracts Rs 5 flat fee, and what 0.4% charges?

Starting October 15, a new Merchant Discount Rate (MDR) structure will apply to specific Unified Payments Interface (UPI) transactions. While most peer-to-peer transfers and individual payments remain free of charge, certain transactions will now incur either a flat fee of Rs 5 or a 0.4% charge depending on the transaction type.

These changes exclude personal transfers between individuals, such as payments to friends, which will continue to be free. Additionally, auto-debit services and UPI mandates are exempt from the new MDR policy, ensuring that recurring automated payments remain unaffected by the updated fee structure.