UPI is accepted in 11 countries: Will MDR charges apply globally? What we know so far

The Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI), has expanded its global footprint, with the real-time payments platform now accepted in 11 other countries.

Greece and the Maldives are the latest nations to adopt UPI, according to a statement issued by the Press Information Bureau (PIB). The other places where UPI is accepted include Cambodia, Bhutan, Nepal, Singapore, the United Arab Emirates (UAE), France, Sri Lanka, Mauritius and Qatar.

This data holds significance as the government prepares to implement MDR on select UPI merchant transactions from October 15, 2026.

UPI MDR to be applicable globally?

The new MDR framework for UPI transactions will apply in the 11 countries where UPI is currently functional, Moneycontrol reported on Friday, citing Finance Ministry sources.

However, the government’s FAQ released earlier this month, when the MDR was announced, does not explicitly mention extending the charges to all 11 countries. Official confirmation on the development is still awaited.

How MDR charges will be rolled out in India

Under the new framework, an MDR of 0.4% will apply to specified merchant transactions above ₹2,000. For transactions of ₹75,000 and above, the charge will be capped at ₹300 per transaction.

Additionally, transactions above ₹2,000 in essential and thin-margin sectors, including railways, telecommunications, insurance, fuel and agricultural inputs, will attract a flat MDR of ₹5 per transaction.

A separate, much lower MDR of 0.02% will apply to capital-market-related UPI payments, also capped at ₹300 per transaction. This category includes transactions involving mutual funds, securities, stock brokers and dealers.

What will remain free for consumers?

The government maintains that all person-to-person UPI transactions will remain completely free, irrespective of the amount transferred. This means no transaction fee, platform fee or other charge may be imposed on individuals for sending or receiving money through UPI.

According to a government statement published on September 15, MDR is a charge within the merchant payment ecosystem, and hence does not apply to customers making UPI payments.

Can merchants pass on the charges to customers?

No, banks have been strictly advised to ensure that merchants do not pass MDR charges on to customers, the release said.

UPI application providers are also expressly prohibited by the government from imposing platform fees or hidden charges, it added.

Support for small merchants

Small merchants, including street vendors, who receive up to ₹1 lakh per month through UPI QR codes under the person-to-person-merchant category, will also continue to enjoy zero MDR on all transactions.

“This provision will protect street vendors, neighbourhood shops and other small businesses from additional payment costs,” the government said.

To provide further support to small merchants, a dedicated fund will be established to promote UPI adoption among them. Accordingly, an amount equivalent to 5% of total MDR collections will be contributed to this fund.