UPI Payment Rules: In this era of Digital India, we carry UPI payments with our mobile phones everywhere from vegetable vendors to big showrooms. Our habit has become such that we almost forget to keep cash in our wallet. But now the big payouts are about to change. From October 15, 2026, 0.4 percent MDR (Merchant Discount Rate) is going to be applicable on P2M (Person to Merchant) UPI payments above Rs 2000. There is a lot of confusion among people regarding this. A recent nationwide survey revealed that people would avoid UPI if extra money was deducted from their pockets.

Customers don’t want any extra charge

A large survey has been done by Localcircle in 291 districts across the country. More than 67 thousand UPI users have given their opinion in this. Statistics show that 76 percent of consumers spend Rs. Don’t want to pay any extra charges on payments above 2000. It clearly says that it will change the mode of payment if the charge is imposed. The entire survey found that only 14 percent people are willing to use UPI even after paying the charges. Rest of Rs. 2000 have decided to find other ways to pay more.

People will switch back to cash

The survey results show that people have prepared their backup plans. 27 percent will go back to cash transactions if UPI becomes more expensive. While 26 percent people will use credit card. Apart from this, 14 percent people will choose the debit card option. There are also 4 percent people who will transfer money through NEFT or IMPS. About 9 percent of people are seeking another option at no charge. Surprisingly, 2 percent said they would postpone their purchase if the charge was imposed.

Traders also have their own tension

This whole tension is not just for consumers. A different kind of panic is also being seen among the shopkeepers. As per the 0.4 percent MDR, a shopkeeper would have to pay Rs 20 on a payment of Rs 5,000. When the payment is 50,000 rupees then this charge will be 200 rupees. Local Circle also spoke to more than 32 thousand businessmen. Among them 41 percent traders clearly said that they will not pay MDR from their own pocket. Only 17 percent of shoppers seem willing to bear this cost. While 9 percent businessmen said that they do not take UPI at all.

Strict notice from Govt

Now the biggest question arises is who will give this money. The Finance Ministry has made the position fully clear. Government says that MDR is neither a government tax nor NPCI is collecting it. A strict instruction has been given to the traders that this money should not be collected from the customers under any circumstances. Banks have also been asked to ensure that customers are not burdened. The entire system will be closely monitored from October 15.

However, the report revealed that if a shopkeeper wrongly collects money from a customer, it is not yet clear what action will be taken against him. The process of how the customer will get his refund is also not fully explained. The survey means that if these charges are surreptitiously levied on consumers in the market, a large portion of high-value UPI payments will be returned in cash or cards.