MDR charges announced: Who will pay how much for UPI transactions
The Indian government has announced a new merchant discount rate (MDR) regime for UPI transactions, with the aim of exempting person-to-person payments from the levy, regardless of transaction amount. This means that MDR will only be charged on payments to merchants, with a rate of 0.4% for transactions over Rs 2,000, with some exceptions.
The new framework will come into effect from October 15, providing sufficient time for acquiring banks, payment aggregators, fintech applications, and corporate accounting platforms to update their systems. UPI payments of up to Rs 2,000 will continue to be free for person-to-person transactions, while payments above this threshold will attract the 0.4% MDR, capped at Rs 300 for high-value transactions exceeding Rs 75,000.
Brief written by urgent.news from The Indian Express's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
