MDR will be applicable on some large UPI payments from October 15. Learn how this will affect Indians traveling abroad and the common man, and which payments will be fee-free.

UPI MDR Charges Rules: Will you have to pay UPI charges even while going abroad?

Are you planning to travel abroad for a few days? You'll need to make payments using UPI there too. So, you're likely wondering: will you have to pay a separate fee for every payment after the new rules? The government has answered this question as well.

According to the government, the MDR fee will not be collected directly from customers. This means that ordinary people making payments using UPI will not be charged this new fee. Even merchants cannot charge this fee from customers.

What will change from October 15th? 
Starting October 15th, 2026, MDR will be applicable on certain large UPI payments. Under the new rules, a fee of 0.4% has been set for eligible merchant payments exceeding ₹2,000.

For such payments of ₹75,000 or more, the maximum fee is ₹300. Importantly, this fee is not charged to the customer.

What will those going abroad have to do?

If you are going abroad for a few days and make a payment through UPI at a shop there, then you will not be charged any separate MDR fee just because you are abroad.

However, UPI isn't supported everywhere abroad. So, before traveling abroad, make sure to check whether the destination you're visiting supports UPI payments.

And who will not be charged?

If you send money to your family or a friend in India through UPI before going abroad or while living abroad, then no MDR will be charged on this also.

This means that payments sent from one person to another will continue without any charges as before.