Do you make SIP payments via Google Pay or PhonePe? A new rule comes into effect on October 15—here is how it will impact your pocket..

If you invest in mutual funds monthly and pay your SIP installments via Google Pay, PhonePe, or any other UPI app, this news is relevant to you. Certain rules regarding UPI payments are set to change starting October 15, 2026. Consequently, many people are concerned that new charges might be levied on every SIP installment. So, will you have to pay more for your monthly SIPs? Let us explain this in simple terms.

**Good news for SIP investors**
To understand SIPs simply: you invest a fixed amount in a mutual fund every month. For instance, if you have started a monthly SIP of ₹5,000, that amount is automatically deducted from your account for investment each month.

If you have enabled the UPI AutoPay or UPI Mandate facility for this, there is no need to worry. The new UPI charges coming into effect on October 15 will not directly impact such regular SIP installments. In other words, your SIP amount will not increase solely due to this new rule.

UPI apps like PhonePe offer an AutoPay feature. This allows you to pre-authorize the automatic deduction of the SIP amount from your bank account on a scheduled date, eliminating the need to make the payment manually every month.

**So, what is the 0.02% charge for?**
The new UPI regulations specify distinct charges for certain investment-related payments. An MDR (Merchant Discount Rate) of 0.02% may be applied to specific payments involving shares and mutual funds, subject to a maximum cap of ₹300. Let’s look at an example: suppose there is a payment of ₹10,000 to which this charge applies. 0.02% of ₹10,000 amounts to ₹2.

However, it is crucial to understand one important point here: MDR does not mean this amount will be deducted directly from the customer's account every time. It is a fee applicable to the merchant or entity receiving the payment. No charges on every UPI payment
The new rule does not mean that you will have to pay a fee for every UPI payment. MDR will not be levied on routine payments of up to ₹2,000 made to shops or businesses. Similarly, if you transfer money to a friend, relative, or any other individual via UPI, this charge will not apply to such person-to-person payments.

What should SIP investors do?
If your SIP is already running via UPI AutoPay, there is no need to worry about the new rule. It has not been indicated that this new MDR will directly impact regular SIP installments.

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