Government Announces New MDR Framework for UPI Transactions Effective October 15
· Business · Indian Express, India Today, The Hindu
The Indian government announced that person-to-person UPI transactions will remain entirely free regardless of the transfer amount. However, merchant transactions exceeding Rs 2,000 will attract a merchant discount rate of 0.4% starting October 15. High-value merchant payments above Rs 75,000 will have their 0.4% MDR capped at Rs 300 per transaction. Essential services such as railways, fuel, and telecommunications will carry a flat Rs 5 fee, while mutual fund and stockbroker transactions will incur a 0.02% charge capped at Rs 300. Small merchants receiving up to Rs 1 lakh per month via QR codes are exempt from the levy.
Why it matters
The finalized MDR framework introduces formal charges for larger digital merchant transactions while protecting small vendors and everyday peer-to-peer transfers from new fees.
Read the original report — Indian Express
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