Government introduces MDR on UPI merchant transactions above ₹2,000
Big update for digital payments: Starting now, the government is introducing a Merchant Discount Rate (MDR) on merchant (P2M) UPI transactions over ₹2,000.
If you're just sending money or making small purchases, don't worry, users aren't charged, and merchants won't pay anything for transactions below ₹2,000.
The goal? To help UPI grow and keep those payment systems running smoothly.
Merchants charged 0.4% MDR, capped ₹300
For payments above ₹2,000, merchants will see a 0.4% fee (capped at ₹300 for payments of ₹75,000 and above).
Small merchants earning up to ₹1 lakh per month through UPI QR codes are fully exempt: no MDR for them.
Railways get a flat ₹5 fee per transaction. Person-to-person transfers stay free.
Part of these new fees will go toward helping more small shops accept UPI in the future.