NPCI delays MDR for select P2M UPI payments over ₹2,000
Heads up: NPCI is about to introduce an MDR for select P2M UPI transactions exceeding ₹2,000.
While these charges were supposed to start on the 15 October start date, they've been pushed to sometime after Diwali, so everyone's waiting for the new date.
Both shop owners and shoppers are curious about what this means for daily transactions.
MDR charged at 0.4% capped ₹300
MDR is a small fee merchants pay when you use UPI for purchases over ₹2,000, set at 0.4%, with a maximum of ₹300 on really big transactions (₹75,000 and above).
For railways and telecoms, it's just ₹5 per eligible payment. Stock market-related payments get an even lower rate (0.02%, capped at ₹300).
Good news: sending money directly to friends or family via UPI stays totally free.
NPCI MDR move helps cover costs
This move helps cover the costs of running digital payment systems.