New 0.4% UPI Merchant Charge Takes Effect From October 15
· Business · India Today, Economic Times, Hindustan Times
A new 0.4% Merchant Discount Rate will apply to direct UPI merchant payments above Rs 2,000 starting October 15. The fee will be paid by the merchant to its acquiring bank rather than the consumer. Transactions of Rs 75,000 and above will carry a capped fee of Rs 300. Everyday consumer payments of Rs 2,000 or less remain entirely free under the new framework. Merchants are explicitly prohibited from passing this MDR charge on to buyers.
Why it matters
Merchants accepting high-value digital payments will absorb additional transaction costs, while everyday consumers continue to make UPI transfers without direct fees.
Read the original report — India Today
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