“New UPI Charges 2026: Who Pays? Complete Guide to MDR, Hotels, Airlines, BRPL, RTGS & NEFT”

       Complete Guide for Customers & Businesses The introduction of new UPI Merchant Discount Rate (MDR) rules from 15 October 2026 has created considerable confusion among consumers and businesses. 

Will customers have to pay for UPI? 

Will sending money to friends or relatives become chargeable? 

Will hotel and airline payments attract additional charges? 

What about electricity bills, RTGS, NEFT and direct bank transfers?

This article explains the new UPI rules in simple language.What is UPI MDR?MDR means Merchant Discount Rate.It is a fee associated with processing certain digital payments made to merchants. Under the new framework, specified merchant UPI transactions above ₹2,000 can attract MDR.However, MDR should not be confused with a general UPI charge on customers.The important distinction is between P2P — Person to Personand P2M — Person to Merchant.

    1. Sending money to a friend or relative If you use BHIM, UPI or another UPI application to send money to another individual, it is a P2P transaction.For example:- ₹5,000 to a friend- ₹50,000 to a relative- ₹1,00,000 to a family member- ₹2,00,000 to another individual These remain free under the new UPI MDR framework.Person → Person = No UPI MDR Therefore, people do not need to worry that sending a large amount to a family member through BHIM will suddenly attract 0.4%.

      2. Paying a shop or business through UPIA payment to a merchant is different.For qualifying normal merchant transactions above ₹2,000, the announced standard MDR is:0.4%, subject to a maximum of ₹300 per transaction.Examples:.Payment| 0.4%| Maximum MDR₹5,000| ₹20| ₹20₹25,000| ₹100| ₹100₹50,000| ₹200| ₹200₹75,000| ₹300| ₹300₹1,00,000| ₹400| ₹300₹5,00,000| ₹2,000| ₹300The ₹300 maximum is therefore important for high-value transactions.

      3. Does the customer pay the MDR? No.The MDR is a merchant-side payment-processing charge under the announced framework.Therefore, if your hotel bill is ₹30,000, the fact that the merchant may incur MDR does not automatically mean that the customer should be charged:₹30,000 + ₹120 UPI MDR.The government has also said UPI providers cannot impose hidden/platform charges on customers and banks have been advised to ensure merchants do not pass MDR on to customers.However, businesses may have separate convenience or booking fees under their own terms. These should not be confused with MDR.

     4. What about hotel payments?Suppose you stay at a hotel and your bill is:₹30,000If the hotel falls under the standard merchant category, the MDR calculation would be:₹30,000 × 0.4% = ₹120But ₹120 is the merchant-side MDR calculation, not automatically an additional ₹120 payable by the customer.Before paying, however, check the final checkout amount because a hotel or booking platform may have its own:- Convenience fee- Booking fee- Service fee- Payment-processing fee These are separate from UPI MDR.

      5. What about airline tickets?Suppose your air ticket costs:₹30,0000.4% = ₹120For:₹40,0000.4% = ₹160Again, these figures relate to the merchant-side MDR under the standard category.They do not mean that a passenger automatically pays an additional ₹120 or ₹160 merely because UPI is used.Airlines and travel portals can independently charge convenience or booking fees, so always compare the final payable amount.

     6. What about BRPL electricity bills?Electricity payments are treated differently from ordinary merchants. For qualifying utility payments above ₹2,000, the announced special MDR is:₹5 per transactionTherefore, if you pay a:₹20,000 BRPL electricity bill the special utility MDR is ₹5, rather than applying the standard 0.4% rate. Again, this is not automatically an additional ₹5 that the consumer must pay.

        7. What about RTGS and NEFT?This is an important point.RTGS and NEFT are NOT UPI.Therefore, the new UPI MDR framework does not automatically apply to:- RTGS- NEFT- Direct bank transfer- Internet banking transferFor example, suppose you have to pay a business:₹5,00,000and the business gives you its bank account details.You can make a direct bank transfer through the applicable banking channel.That payment is not a UPI merchant transaction, so the new UPI MDR does not apply simply because the amount is ₹5 lakh.Banks can, however, have their own applicable service charges depending on the account and banking arrangement.

      8. Can businesses avoid UPI MDR by asking customers for bank transfers? 

For businesses receiving large-value payments, direct bank transfer is a separate payment rail from UPI.Therefore, businesses may offer customers options such as:- NEFT- RTGS- Direct bank transfer- Cheque- UPIThe applicable banking charges and business policies should be checked separately.For high-value purchases, businesses should also maintain proper invoices and accounting records regardless of the payment method.

     9. Should customers split a large UPI payment?

Suppose a hotel bill is ₹30,000..A customer might think:“Why not make fifteen payments of ₹2,000?”This is not a good strategy for avoiding MDR.The ₹2,000 threshold is part of the merchant-payment framework, and deliberately splitting transactions simply to circumvent applicable charges is not something customers or businesses should rely upon.The correct approach is to use the payment method that offers the lowest legitimate final cost.

      10. How can consumers save money?

The most useful way to save money is not to worry about the merchant's MDR, because it is not supposed to be added to your bill as a UPI charge.Instead, compare the final price.For an airline ticket, compare: Airline website/app + UPI versus Airline website/app + card/net bankingversusTravel portal For a hotel, compare: Direct hotel booking versus Hotel payment link versus Travel portal versus Direct bank transfer, if offered The lowest final payable amount is what matters. 

     Quick Reference Table Situation UPI MDR? 

Customer's position Send ₹50,000 to friend No ₹0 UPI charge Send ₹1 lakh to relative No ₹0 UPI charge. Pay normal merchant ₹5,000 Merchant MDR may apply MDR not automatically added to bill Hotel ₹30,000| Merchant MDR may apply Check final bill/convenience fee Airline ₹40,000 Merchant MDR may apply. Check final booking amount BRPL ₹20,000| Special utility treatment| MDR is merchant/biller-sideNEFT ₹5 lakh| UPI MDR does not apply Bank rules apply RTGS ₹5 lakh UPI MDR does not apply. Bank rules apply Direct bank transfer UPI MDR does not apply Bank rules apply Frequently Asked Questions UPI going to become chargeable for everyone? No. The new framework is primarily concerned with merchant-side MDR for specified transactions. P2P UPI transactions remain free. 

      Will I pay 0.4% when sending money to my brother? 

No. A genuine person-to-person UPI payment remains free. If I pay ₹1 lakh to a hotel by UPI, will I pay ₹400 extra?Not automatically. The 0.4% is the merchant-side MDR calculation and is subject to the ₹300 cap for the standard category. It should not simply be added to the customer's bill as UPI MDR. 

     Can I use RTGS instead of UPI?

Yes, if the recipient provides bank details and accepts RTGS. RTGS is separate from UPI.Can I use NEFT instead?Yes. NEFT is also separate from the UPI MDR framework.Will my ₹20,000 electricity bill attract 0.4% MDR?The announced framework provides a special ₹5 MDR for qualifying utility payments above ₹2,000, rather than the standard 0.4% rate.

         Is BHIM going to charge me for sending money?

P2P UPI transactions remain free under the announced MDR framework. Any separate bank-specific service limitation or charge would be a different matter.

      Conclusion The biggest misconception about the new UPI rules is that “UPI will now cost 0.4%.”That is not an accurate description.The more accurate picture is:P2P UPIPerson → Person = Free P2M UPI Person → Merchant = MDR may apply to qualifying transactions RTGS / NEFT Separate from UPI MDR Hotel and Airline Merchant-side MDR may apply, but customers should not automatically be charged MDR separately.                 Electricity/Utilities Special MDR treatment applies For consumers, the best practice is simple: look at the final amount you are being asked to pay and compare legitimate payment options. For businesses, particularly high-value businesses such as jewellery stores, understanding the applicable merchant category, MDR, transaction cap and payment-provider terms will become increasingly.

    -- Extract from AI

IMPORTANT ABOUT BRICKS. INDIA Chairing 4th time.

BRICS Summit: Why It Matters So Much for India

The BRICS Summit being hosted by India is not just an honour or a big international event. In my view, it is a very important opportunity for India to increase its influence in world affairs and also to gain economically and strategically.

BRICS has become much bigger than it was when it started with Brazil, Russia, India and China. Today, it includes 11 countries and represents a very large part of the world's population and economy.

But how powerful is BRICS really? And what can India actually gain from hosting the summit?

India gets an important position

The biggest advantage for India is that, as the host country, India gets to decide many of the important issues that BRICS will discuss during the year.

India's focus this year is on resilience, innovation, cooperation and sustainable development. There is also a strong focus on startups, small businesses, technology, trade, energy and better cooperation between member countries.

This means India is not simply arranging a meeting. It gets a chance to put its own priorities before some of the world's most important countries.

A rare opportunity to bring major powers together

The summit also gives India an opportunity to directly engage with leaders of countries such as China and Russia, along with other important nations from Asia, Africa, the Middle East and Latin America.

This is particularly important because India has to maintain good relations with countries that do not always get along with each other.

India has its own differences with China, but China is also one of India's biggest trading partners. Russia remains an important partner for India, especially in defence and energy.

At the same time, India has very strong and growing relations with the United States, Europe, Japan and other Western countries.

This is where India's position becomes important.

India does not have to choose one side. It can maintain relations with everyone and protect its own interests.

Economic benefits could be even more important

For India, the real success of BRICS should not be measured only by the final declaration or photographs of world leaders.

The bigger benefit could come from increased trade and business opportunities.

BRICS countries can work together on supply chains, technology, startups, small businesses, energy and investment.

India is also pushing for better opportunities for its MSMEs and startups to enter foreign markets. A proposed BRICS Startup Innovation Fund and greater cooperation between startup centres could eventually help Indian entrepreneurs find investors, partners and customers in other BRICS countries.

There is also the New Development Bank, which can provide money for infrastructure and development projects. If its role becomes bigger, developing countries will have another important source of funding besides traditional institutions such as the World Bank.

What about the dollar?

Another important discussion is about using the currencies of BRICS countries for trade.

This does not necessarily mean that BRICS is going to create a new currency or replace the US dollar.

For India, the more practical idea is that two countries should be able to settle some of their trade more easily using their own currencies.

This could reduce dependence on the dollar in some areas, but I don't think India wants to completely move away from the dollar. India's approach is likely to be more practical than political.

Can BRICS really influence world politics?

Yes, but it is important to understand its limitations.

BRICS is economically and politically important, but it is not like NATO. It does not have a common army or a single foreign policy. Its members often disagree with each other.

For example, India and China have their own disputes. Russia and the West have serious differences. Even some BRICS members have disagreements among themselves.

Therefore, BRICS cannot simply behave like one united country or alliance.

But its size gives it a strong voice.

When countries representing such a large part of the world's population and economy speak together on issues such as international trade, energy, development, global financial institutions or UN reforms, the rest of the world cannot ignore them.

India's bigger goal

I believe India's biggest strategic opportunity is to make BRICS stronger without allowing it to become an anti-American or anti-Western group.

India wants a world where there are several powerful centres, rather than one country or one group dominating everything.

At the same time, India does not want BRICS to become dominated by China either.

This balancing act is very important for India.

India wants good relations with Russia and China, but also with America, Europe, Japan and other countries. BRICS gives India another platform to increase its influence while keeping its freedom to make its own decisions.

What would make the summit a real success?

For me, the summit will be successful if it produces practical results rather than just another long declaration.

The most useful outcomes for India would be:

• Better trade between BRICS countries
• More opportunities for Indian companies and MSMEs
• Greater cooperation for startups and technology
• Easier trade using national currencies
• More investment through the New Development Bank
• Cooperation in energy and important supply chains
• Greater support for India's demand for reforms in global institutions
• A stronger voice for developing countries in world affairs

My conclusion

So, hosting BRICS is definitely more than an honour for India.

The real advantage is that India gets the opportunity to bring major powers together, set the discussion, promote its economic interests and strengthen its position as an important voice of the developing world.

BRICS may not become a military or political alliance like NATO, and its members will continue to have disagreements. But economically and diplomatically, it has become too large to ignore.

And perhaps the most important thing is this:

India does not need to choose between the West and the BRICS. India's strength is that it can talk to both.

If India can use this summit to increase trade, investment, technology cooperation and its influence in global decision-making, then the real achievement of BRICS will not be the summit itself — it will be the opportunities India creates from it.

श्री कृष्ण~ आस्था, ज्ञान, नीति और कर्म का अद्भुत संगम

श्रीकृष्ण — 

आस्था, ज्ञान, नीति और कर्म का अद्भुत संगम

श्रीकृष्ण भारतीय संस्कृति में केवल भगवान या अवतार के रूप में ही नहीं, बल्कि आध्यात्मिक ज्ञान, आदर्श जीवनशैली, नीति-कौशल, दूरदृष्टि, धर्म-संरक्षण और लोककल्याण के महान प्रतीक के रूप में भी जाने जाते हैं।

उनका जीवन हमें सिखाता है कि जीवन में केवल भावनाएँ ही पर्याप्त नहीं होतीं; विवेक, धैर्य, समय की पहचान, सही निर्णय और कर्म की दृढ़ता भी उतनी ही आवश्यक हैं। श्रीकृष्ण ने परिस्थितियों के अनुसार नीति का प्रयोग किया, परंतु उनका अंतिम उद्देश्य सदैव धर्म और न्याय की स्थापना रहा।

महाभारत और प्राचीन भारतीय ग्रंथों में वर्णित सुदर्शन चक्र, दिव्य अस्त्र, अग्निबाण तथा अन्य अद्भुत शक्तियों को केवल चमत्कार के रूप में देखने के बजाय, हमें उनके पीछे छिपी उस युग की ज्ञान-विज्ञान, तकनीकी कल्पना और भारत की प्राचीन बौद्धिक क्षमता पर भी विचार करना चाहिए। चाहे इन वर्णनों को हम आध्यात्मिक, प्रतीकात्मक या प्राचीन विज्ञान की दृष्टि से देखें, वे हमारी समृद्ध ज्ञान-परंपरा की ओर संकेत अवश्य करते हैं।

आज आवश्यकता केवल श्रीकृष्ण की पूजा करने की नहीं, बल्कि उनके ज्ञान और जीवन-दर्शन को समझकर व्यवहार में उतारने की है। उनकी नीति हमें सिखाती है कि धर्म केवल पूजा-पाठ और कर्मकांड तक सीमित नहीं है; धर्म का वास्तविक अर्थ है—कर्तव्य का पालन, न्याय का साथ, अन्याय का विरोध, लोकहित और सत्य के प्रति निष्ठा।

भगवद्गीता केवल पढ़ने, सुनने या दूसरों को सुनाने के लिए नहीं है। वह जीवन की वास्तविक परिस्थितियों में सही मार्ग चुनने का ज्ञान देती है। मोह के समय विवेक, संकट के समय धैर्य, कर्म के समय निष्ठा, सफलता के समय विनम्रता और कठिन परिस्थितियों में अपने कर्तव्य से विमुख न होना—गीता का यही जीवनोपयोगी संदेश है।

इसलिए श्रीकृष्ण को केवल मंदिर की मूर्ति या पूजा के पात्र के रूप में नहीं, बल्कि अपने विचारों, निर्णयों, कर्मों और चरित्र में जीवित आदर्श के रूप में अपनाना चाहिए।

कृष्ण को जानना केवल उन्हें मानना नहीं है;

कृष्ण को समझना है—और उनके ज्ञान को जीवन में उतारना है।

यही सच्ची कृष्ण-भक्ति है, यही गीता का सार है।

*आप सभी को जन्माष्टमी की शुभकामनाएं*

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भारत के Gen Z के नाम एक विचारपूर्ण अपील

भारत का भविष्य उसकी युवा शक्ति के हाथों में है। मुझे पूर्ण विश्वास है कि भारत का Gen Z केवल भावनाओं से नहीं, बल्कि विवेक, तथ्यों और राष्ट्रीय उत्तरदायित्व की भावना से निर्णय लेने की क्षमता रखता है।

भारत का इतिहास इस बात का साक्षी है कि जब भी राष्ट्र किसी चुनौती के दौर से गुज़रा है—चाहे वह कोविड महामारी हो, सीमाओं पर सुरक्षा की चुनौती हो या कोई अन्य राष्ट्रीय संकट—हमारे युवाओं, सैनिकों, डॉक्टरों, वैज्ञानिकों और नागरिकों ने अद्भुत साहस, अनुशासन और राष्ट्रनिष्ठा का परिचय दिया है। यही भारत की वास्तविक पहचान है।

लोकतंत्र में मतभेद स्वाभाविक हैं और असहमति भी लोकतांत्रिक व्यवस्था का अभिन्न अंग है। किंतु लोकतांत्रिक अधिकारों और राष्ट्रहित के बीच संतुलन बनाए रखना भी उतना ही आवश्यक है। किसी भी विचार, आंदोलन या अभियान का मूल्यांकन तथ्यों, संवैधानिक मूल्यों और राष्ट्रीय हित की कसौटी पर होना चाहिए, न कि केवल भावनात्मक या वैचारिक आग्रह के आधार पर।

यदि किसी संगठन, संस्था या समूह पर विदेशी प्रभाव, अपारदर्शी वित्तपोषण या भारत के लोकतांत्रिक एवं सामाजिक ढाँचे को प्रभावित करने जैसे आरोप हैं, तो उनकी निष्पक्ष, पारदर्शी और विधिसम्मत जांच होनी चाहिए। किसी भी लोकतंत्र की शक्ति कानून के शासन और सत्य पर आधारित निष्कर्षों में निहित होती है।

भारत की सबसे बड़ी पूँजी उसकी युवा चेतना है। इसलिए मेरा विनम्र आग्रह है कि हमारा Gen Z सूचना के इस युग में सत्य और दुष्प्रचार के बीच अंतर करना सीखे, आलोचनात्मक चिंतन को अपनाए, और किसी भी वैचारिक ध्रुवीकरण का उपकरण बनने के बजाय राष्ट्र निर्माण का सहभागी बने।

आइए, हम सब मिलकर एक ऐसे भारत के निर्माण का संकल्प लें जहाँ राष्ट्रीय एकता, लोकतांत्रिक मूल्यों, सांस्कृतिक विरासत और संवैधानिक दायित्वों का सम्मान सर्वोपरि हो।

राष्ट्र प्रथम। संविधान सर्वोपरि। भारत सर्वोपरि।

जय हिन्द। जय भारत।