Plea in SC against imposition of MDR on UPI payments of above Rs 2,000
The government has introduced a 0.4% fee on UPI payments of more than Rs 2,000 made to merchants from October 15. Under this, a merchant discount rate (MDR) of 0.4% is to be levied on person-to-merchant transactions of above Rs 2,000. However, no MDR is to be levied on UPI transactions of up to Rs 2,000.
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.
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