Do you pay UPI charges above ₹2,000?
Short answer: no. The new fee is charged to merchants — you still pay only the listed price.
Updated October 2026
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Based on the NPCI MDR framework effective 15 October 2026, as publicly reported. Excludes GST and provider charges. Rules can change — confirm with NPCI or your bank/payment provider.
Extra charge to you
₹0
Person-to-person UPI transfers are free, at any amount. Splitting a bill by sending your share to the friend who paid is not affected.
Splitting a bill? Calculate & pay by UPIFrom 15 October 2026, NPCI’s merchant discount rate (MDR) framework applies a 0.4% fee, capped at ₹300, to certain person-to-merchant (P2M) UPI payments above ₹2,000. The fee sits on the merchant’s side, so as a customer you still pay only the price shown.
Paying friends is unaffected. Person-to-person (P2P) UPI transfers stay free at any amount — including splitting a dinner or trip bill by sending your share to whoever paid. Use the checker below to see who bears what, then split your next bill free.
How it works
- 1
Pick who you’re paying
A friend or family member (P2P) or a shop or business (P2M). The fee only ever applies to the second case.
- 2
Enter the amount
Payments up to ₹2,000 are free either way. Above that, see roughly what the merchant’s side may pay.
- 3
Split the bill the free way
For group bills, one person pays the merchant and everyone else sends them their share by UPI — a free P2P transfer.
FAQ
Will I be charged extra for UPI payments above ₹2,000?
No. The MDR is a merchant-side fee. You should pay only the listed price, and UPI remains free for consumers.
Does it apply when I send money to a friend?
No. Person-to-person UPI transfers are free at any amount, so settling a split bill with friends costs nothing.
Which merchants pay, and how much?
As reported: 0.4% of the payment (capped at ₹300) for most merchants; a flat ₹5 for railways, telecom, insurance, fuel, utilities and agri inputs; and 0.02% (capped at ₹300) for capital-markets payments. Merchants receiving up to ₹1 lakh a month over UPI pay nothing.
What about payments up to ₹2,000?
They stay free for both the customer and the merchant.
Is this the same as the 2023 wallet fee?
No. In April 2023 NPCI introduced a 1.1% interchange fee on UPI payments above ₹2,000 made through prepaid wallets (PPIs). That was also paid on the merchant side, not by customers. The October 2026 MDR framework is separate.
When does it start, and could it change?
15 October 2026. Rules like this can be revised, so confirm the latest on npci.org.in or with your bank. This page is for general information, not financial advice.
Need more than a quick calc?
Track multiple expenses, unequal splits, and ongoing groups in the full SplitBiller app — still no signup.
Split a bill & settle via UPI