NPCI: New MDR spares subscriptions while charging 0.4% above ₹2,000
Good news if you binge on Netflix or pay bills through UPI AutoPay: NPCI just confirmed that the new Merchant Discount Rate (MDR) won't touch your recurring payments or subscriptions.
So, services like Amazon Prime, utility bills, and mutual fund SIPs stay fee-free, even as a 0.4% charge now applies to single merchant payments over ₹2,000.
NPCI: Ordinary UPI use remains free
NPCI says you don't need to worry about extra charges for day-to-day UPI transfers.
Kunal Jhunjhunwala, Founder, airpay, said, "UPI is already such a part of everyday payments that a merchant-side charge is unlikely to change consumer behavior."
The new framework introduces a 0.4% MDR on select P2M UPI transactions above ₹2,000, capped at ₹300 for transactions of ₹75,000 and above, while ordinary consumer UPI use remains free.