The End of Free UPI? New Rules for Payments Above ₹2,000. Will Shopkeepers Charge You Extra?

The End of Free UPI? UPI Is Not Free Anymore, UPI MDR Fee Explained — 0.4% Charge on Payments Above ₹2,000 Starting October 15, 2026 In this video, we break down the new UPI MDR (Merchant Discount Rate) charges that NPCI and the Indian government have introduced for UPI payments above ₹2,000. We explain who actually pays this fee, where the money goes, and how it impacts you as a customer, shopkeeper, and small business owner. Key Topics Covered: ✅ What is UPI MDR (Merchant Discount Rate)? ✅ 0.4% fee on Person-to-Merchant (P2M) payments above ₹2,000 ✅ ₹300 cap on payments above ₹75,000 ✅ P2P payments (friends & family) remain FREE forever ✅ 96% of merchant payments are unaffected ✅ Small merchant exemption — ₹1 Lakh/month QR code limit ✅ Who earns from your ₹40 fee? Banks (60%), Apps (25%), Partners (15%) ✅ NPCI's role — referee or player? ✅ PhonePe, Google Pay, Paytm — ₹16,000-20,000 Crore revenue opportunity ✅ Sector exemptions — Railways, telecom, insurance, petrol, agriculture = flat ₹5 fee ✅ Capital market — Zerodha, Groww = only 0.02% MDR, SIP via UPI AutoPay = FREE ✅ Nithin Kamath's criticism — why brokers lose money on UPI MDR ✅ Will shopkeepers pass the cost to customers? GST comparison ✅ Will cash payments make a comeback? ✅ What should you do as a UPI user? This video is part of our Digital Payments series. Watch our previous video: "UPI Free Hai Toh Ye Companies Kamati Kaise Hain?" UPI MDR effective date: October 15, 2026 📊 August 2026 UPI stats: 24.51 billion transactions, ₹29.9 Lakh Crore value CHAPTERS 00:00 - Is UPI Still Free? The New Rules 01:58 - Sending to Friends vs Paying at Shops (Which Has Fees?) 03:26 - Will Shopkeepers Ask You for Extra Money? 04:48 - Who Actually Takes the Extra Fee? 06:22 - What NPCI Says About New Charges 07:30 - How Apps Like GPay and PhonePe Make Money 08:31 - Relief for Small Shopkeepers (Under ₹1 Lakh) 09:37 - Charges on Mobile Recharge, Tickets & Utilities 12:11 - Why Running UPI Costs Big Money 13:30 - Will Pe