EconomyThursday, 17 September 2026·Hindu Tamil Thisai
NPCI clarifies UPI AutoPay is exempt from 0.4% MDR on recurring payments
NPCI said UPI AutoPay for recurring payments is outside the new 0.4% MDR framework for merchant UPI transactions above ₹2,000.
Key highlights
Direct fact
In October 2026, the National Payments Corporation of India (NPCI) clarified that UPI AutoPay is exempt from the new 0.4% MDR framework announced for merchant UPI transactions above ₹2,000 from October 15.
Key specifics
- The new MDR rate is 0.4% for merchant UPI transactions above ₹2,000 from October 15.
- UPI AutoPay is used for recurring payments such as OTT subscriptions, SIPs and insurance premiums.
- A user paying ₹2,500 monthly for an OTT subscription through AutoPay will not be charged an extra 0.4% MDR.
- NPCI said the AutoPay mode is different from ordinary UPI payment flows for business use.
- Examples of AutoPay usage include electricity bills, mobile bills, monthly instalments and mutual fund transactions.
Exam lens
Digital payments question, NPCI, UPI AutoPay and MDR are the core facts; TNPSC may ask which payments are covered under AutoPay and from which date the 0.4% MDR applies.