UPI Merchant Fees: New Rules for Payments Above ₹2,000
· Business · India Today, Hindustan Times
Starting October 15, a 0.4% Merchant Discount Rate (MDR) will apply to person-to-merchant UPI payments exceeding ₹2,000. The charge is capped at ₹300 for transactions of ₹75,000 and above, and the government has explicitly stated that this cost must not be passed on to consumers. Person-to-person transfers and small-value merchant payments remain free of charge. The government estimates that 96% of merchant transactions will remain unaffected by this new framework.
Why it matters
This policy change shifts transaction costs within the merchant ecosystem, potentially impacting how small businesses manage digital payments while keeping consumer transactions free.
Read the original report — India Today
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