UAE-based Non-Resident Indians will continue to use the Unified Payments Interface (UPI) without paying transaction fees for personal transfers when India’s new Merchant Discount Rate takes effect on October 15, 2026. The new 0.4 percent charge, which is capped at Rs300, will strictly apply to eligible person-to-merchant payments exceeding Rs2,000. Indian financial authorities confirmed that this processing fee will be absorbed entirely by the merchants and will not be passed on to consumers. Personal transactions, such as transferring funds to family members, remain completely free regardless of the amount transferred. NRIs who have linked their UAE mobile numbers to eligible NRE or NRO accounts can continue their digital payments as usual, though they are advised to monitor their checkout totals to ensure vendors do not incorrectly add separate processing charges.