Question 1

Is UPI free for consumers and buyers?

Accepted Answer

Yes. Sending money to friends (P2P) and paying at shops (P2M) remain completely free for consumers. Banks and merchant apps cannot add a checkout surcharge or deduction to your account.

Question 2

Are merchant transactions below ₹2,000 free of MDR?

Accepted Answer

Yes. Under the Ministry of Finance policy, all merchant payments up to ₹2,000 carry zero MDR. Government transaction data shows this covers approximately 96% of all merchant purchases across India.

Question 3

What is the MDR for transactions above ₹2,000, and is there a cap?

Accepted Answer

The standard MDR for commercial transactions above ₹2,000 is 0.40%. For payments of ₹75,000 and above, the law caps the MDR at ₹300 per transaction.

Question 4

How are electricity, water, and school fees charged?

Accepted Answer

Public utilities (electricity, water, municipal tax portals) and accredited schools and colleges have a flat ₹5 MDR per transaction above ₹2,000 instead of a percentage rate.

Question 5

Can I use the bill splitter to avoid transaction limits or merchant fees?

Accepted Answer

No. UPIfree provides bill splitting strictly for genuine shared expenses, such as group dinners, shared road trips, or house rent. Never use bill splitting to artificially divide a single commercial purchase to bypass acquiring rules.

Question 6

Does UPIfree ever ask for my UPI PIN, OTP, or bank passwords?

Accepted Answer

Never. UPIfree is an informational utility. The platform never asks for or stores UPI PINs, passwords, OTPs, or debit card details. QR inspections run entirely in your web browser. The Bill Reader transmits uploaded images to Sarvam AI and OpenAI solely to extract printed text. Never photograph PIN, OTP, or Aadhaar credentials. Ask Pikoo processes queries through an AI endpoint without saving user accounts.

Question 7

When does the new shop MDR actually start?

Accepted Answer

The Ministry of Finance statement is dated 15 September 2026. NPCI circulars and official reporting establish that merchant MDR on specified shop payments above ₹2,000 applies from 15 October 2026. The calculators show the active regulatory framework so you can model deductions in advance.

Question 8

Does a small kirana with a QR still pay 0.40% above ₹2,000?

Accepted Answer

Not if it is in the small-merchant (P2PM) class: up to ₹1 lakh a month received on a UPI QR into the shop's personal account. That class stays at ₹0 MDR on every ticket, according to NPCI FAQ coverage in mid-September 2026. GST registration is not required for that class.

Question 9

If the shop pays MDR, will they just raise the price so I pay anyway?

Accepted Answer

On the UPI debit you still pay the listed bill, not the bill plus a UPI processing line. A shop can change its sticker price for cash and UPI together; that is a price change, not a PIN-time surcharge. Tickets up to ₹2,000 have ₹0 MDR, so there is no fee to pass on. Officials announced they will monitor transactions from 15 October 2026 so shops do not load MDR onto the buyer. Read the full split in the guide "If the shop pays MDR, do you still pay?".

Question 10

Will GST or a checkout extra be added to my UPI bill?

Accepted Answer

No. You still pay only the listed amount. MDR is the shop's bank fee. On 17 September 2026, government sources confirmed they will monitor the October rollout so shops do not pass that fee to buyers, and dismissed GST-on-UPI rumors for consumers.

Question 11

Is UPIfree an official government portal or bank?

Accepted Answer

No. UPIfree.com is an independent payment-intelligence website. Our calculators cite public circulars from the Ministry of Finance, the Reserve Bank of India, and the National Payments Corporation of India (NPCI).

Question 12

Can I photograph a restaurant bill or UPI screenshot?

Accepted Answer

Yes, with the Bill Reader. It reads merchant, date, and total from the printed slip and explains buyer fee (₹0) versus shop MDR from 15 October 2026. You can copy the generated breakdown. Printed slips and bank SMS notices remain primary records. Do not photograph PIN or OTP codes.

Question 13

What is Ask Pikoo?

Accepted Answer

Pikoo is the on-site assistant. It answers questions using verified UPI rules, tools, and FAQs. It does not write generic computer scripts or take alternative personas. It does not provide banking support or financial advice. Never enter credentials or secrets. To analyze a bill, use the Bill Reader.

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