Summary of this article
MyUPI brings AI-powered support and safety tools for UPI users.
Users can manage transaction information, mandates and payment safety.
New MDR rules apply to specified UPI payments above Rs 2,000.
The Unified Payments Interface (UPI) ecosystem has gained two new features designed to simplify payments and customer support. The Reserve Bank of India (RBI) Governor Sanjay Malhotra has launched MyUPI and UPI Tap & Pay at the Global Fintech Fest 2026.
MyUPI, developed using the National Payments Corporation of India’s (NPCI's) small language model FiMI, is part of UPI Help. It allows users to view transaction information and AutoPay mandates across banks and UPI apps in one place.
How MyUPI Can Help UPI Users
MyUPI includes a set of features focused on payment safety and customer support. Its Safety Switch allows users to request a decline of UPI debit transactions if they suspect a security issue with their account.
The platform also has a UPI Number Delink option. This allows users to delink their mobile number for receiving UPI payments.
Before making a payment, users can view additional information about the beneficiary through the Payee Context-based Information feature.
For eligible transactions, Automated Chargeback Processing allows users to initiate a chargeback in real time. MyUPI also includes Transaction Replay, which lets users recall and repeat previous transactions through any UPI app.
UPI Tap & Pay Works Through NFC
The second launch, UPI Tap & Pay, allows users to make payments at NFC-enabled point-of-sale terminals.
Users need to unlock an NFC-enabled smartphone and tap it on an NFC-enabled POS terminal. The phone does not need mobile internet for the transaction because the POS machine can use its own internet connection.
The facility supports multiple UPI-linked account types, including RuPay Credit Card on UPI. PIN-free payments can be made up to Rs 5000. For transactions above Rs 5000, users need to enter their UPI PIN on the POS terminal.
New UPI MDR Rules From October 15
Separately, a new Merchant Discount Rate (MDR) framework for UPI payments is set to take effect from October 15, 2026.
Under the new framework, specified person-to-merchant UPI transactions above Rs 2000 will attract an MDR of 0.4 per cent, with the charge capped at Rs 300 per transaction. An eligible Rs 10,000 transaction, for instance, would attract an MDR of Rs 40.
Person-to-person (P2P) UPI transfers will not attract MDR. Merchant payments up to Rs 2000 will also stay outside the charge. The government has also provided exemptions for eligible small merchants under the zero-MDR framework.
The Finance Ministry has estimated that around 96 per cent of merchant transactions will not be impacted by the new framework. MDR is a fee within the payment ecosystem for processing eligible merchant transactions and is not a tax collected by the government or NPCI.
