UPI Payments Above ₹2,000: Will Customers Have to Pay Extra Charges?

There is a lot of discussion about UPI charges for payments above ₹2,000. However, customers do not have to pay a fee for making UPI payments.

From October 15, 2026, a new fee structure is expected to apply to some merchant UPI transactions above ₹2,000. The Merchant Discount Rate (MDR) will be charged to eligible merchants and not directly to customers.

For example, if you pay ₹5,000 to a shop through UPI, you will still pay ₹5,000. You will not have to pay an additional UPI fee.

UPI payments between individuals, such as sending money to friends or family, will continue to be free. Merchant payments of up to ₹2,000 will also remain free.

For certain merchant categories, including fuel, insurance, telecom and railway payments, a fixed fee may apply to eligible transactions above ₹2,000.

Therefore, users do not need to worry about paying extra charges simply because their UPI payment is above ₹2,000. The applicable charges, where relevant, are part of the merchant-side payment structure.