Under the new framework, fuel stations, railways and insurance providers will pay a flat Rs 5 per transaction above Rs 2,000, regardless of the amount.
The MDR will be capped at Rs 300 per transaction, ensuring that high‑value purchases do not trigger excessive fees.
Person‑to‑person UPI transfers remain free, and recurring auto‑debit mandates will not attract any MDR.
Large retailers and online platforms may absorb the fee, but street vendors who collect up to ₹1 lakh a month under the P2PM category will still enjoy zero MDR.
For the average consumer, the flat Rs 5 fee on utility and fuel payments will not be reflected in the bill, but merchants will absorb it.
NPCI will begin monitoring compliance from October 15, and banks will be instructed not to pass the fee to customers.
Ravi Kumar, a tea‑stall owner in Lucknow, says he will continue to accept UPI without charging his customers, citing the new fee structure as a relief for small traders.