NPCI tells Supreme Court MDR on person-to-merchant above ₹2,000 non-transferable
NPCI just told the Supreme Court why it's charging a Merchant Discount Rate (MDR) on specified UPI person-to-merchant transactions above ₹2,000. This comes after a petition questioned the fee.
NPCI made it clear: under the new rules, merchants aren't allowed to pass these charges on to customers.
NPCI caps person-to-merchant fee at 0.4%
Starting October 15, merchant transactions above ₹2,000 get a fee of up to 0.4%, but everyday personal transfers and smaller spends stay free, so most people won't notice any difference.
NPCI says about 96% of person-to-merchant payments aren't affected at all.
It also plans to help small businesses adopt UPI by proposing a dedicated fund to promote UPI adoption among merchants with annual turnover of up to ₹20 lakh, aiming to keep things easy and fair for everyone using digital payments.