UPI sets charges for merchant payments above ₹2,000, caps fee at ₹300
The new MDR framework and threshold structure will come into effect from 15 October, giving acquiring banks, payment aggregators, fintech applications and corporate accounting platforms time to update their software engines and billing systems.
The finance ministry has announced that a 0.4% merchant discount rate (MDR) will apply to person-to-merchant (P2M) UPI transactions above ₹2,000, while person-to-person (P2P) transactions will remain free of charges. For transactions of ₹75,000 and above, the MDR will be capped at ₹300 per transaction. The new framework comes into effect from October 15, aiming to create a sustainable funding mechanism for the UPI system while ensuring that small merchants and P2P transactions remain unaffected by the changes.
Brief written by urgent.news from Live Mint's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- New charges on UPI payments: Here's what you will be charged for stock market investments economictimes.indiatimes.com
- UPI charges of 0.4% to be levied on merchant transactions above ₹2,000 hindustantimes.com
