NPCI rolls out MDR on UPI, small payments exempt
Business
NPCI is rolling out a Merchant Discount Rate (MDR) for UPI transactions, meaning big businesses will now pay a small fee when you use UPI, while everyday users and smaller payments stay untouched.
This shift comes as UPI growth has slowed after its pandemic boom and aims to keep digital payments thriving without hurting regular shoppers.
NPCI targets ₹1000 cr firms
Most of the new fees will come from large companies making over ₹1,000 crore a year, so your local chaiwala or grocery store won't feel the pinch.
Payments up to ₹2,000 are exempt to keep things easy for consumers.
NPCI expects ₹13,000-15,000 crore in the first year, with some of that money going back to support small merchants and upgrade India's digital payment system.