UPI MDR Explained: OTT AutoPay, SIPs & Mutual Fund Payments — What Changes From Oct 15?

UPI payments are set to see a new MDR framework from October 15, but not every payment above ₹2,000 will attract the 0.4% MDR. If your OTT subscription, mutual fund SIP, utility bill or EMI is collected through UPI AutoPay or a mandate, the prescribed MDR does not apply to that recurring transaction. Fresh one-time eligible merchant payments above ₹2,000 will attract 0.4% MDR, while eligible capital-market payments such as mutual fund transactions will have a lower 0.02% MDR, with a maximum of ₹300 per transaction. Specified insurance payments above ₹2,000 will attract ₹5 MDR. Most importantly, MDR is a merchant-side charge and is not a new UPI transaction fee directly charged to customers. Here’s what UPI users need to know before the new framework kicks in on October 15, 2026.