IndiaEconomy
India introduces 0.4% MDR on higher-value UPI merchant payments from October 15
The government has introduced a 0.4 per cent Merchant Discount Rate on person-to-merchant UPI transactions above Rs 2,000, effective October 15. Person-to-person transfers, low-value merchant payments and eligible small merchants remain outside the levy, and the Finance Ministry says consumers will not pay UPI charges.
The government introduced a 0.4 per cent Merchant Discount Rate (MDR) on person-to-merchant (P2M) UPI transactions above Rs 2,000, with the framework taking effect from October 15. The change ends nearly six years of zero-fee UPI merchant payments. Higher-value merchant payments will attract a capped fee, while person-to-person transfers and low-value merchant transactions are ring-fenced from the levy. Eligible small merchants also retain zero MDR.
The Finance Ministry said customers will not be required to pay any charge when making such payments through UPI. It clarified that MDR is a charge within the merchant payment ecosystem and not a charge on customers making UPI payments. Individuals will continue to have unlimited free UPI usage, with no monthly quotas or volume restrictions, according to the supplied report.
- UPI Charges
- UPI MDR
From
IndiaEconomy
India introduces 0.4% MDR on higher-value UPI merchant payments from October 15
The government has introduced a 0.4 per cent Merchant Discount Rate on person-to-merchant UPI transactions above Rs 2,000, effective October 15. Person-to-person transfers, low-value merchant payments and eligible small merchants remain outside the levy, and the Finance Ministry says consumers will not pay UPI charges.
The government introduced a 0.4 per cent Merchant Discount Rate (MDR) on person-to-merchant (P2M) UPI transactions above Rs 2,000, with the framework taking effect from October 15. The change ends nearly six years of zero-fee UPI merchant payments. Higher-value merchant payments will attract a capped fee, while person-to-person transfers and low-value merchant transactions are ring-fenced from the levy. Eligible small merchants also retain zero MDR.
The Finance Ministry said customers will not be required to pay any charge when making such payments through UPI. It clarified that MDR is a charge within the merchant payment ecosystem and not a charge on customers making UPI payments. Individuals will continue to have unlimited free UPI usage, with no monthly quotas or volume restrictions, according to the supplied report.
- UPI Charges
- UPI MDR
From