October 15 select-merchant UPI transactions above ₹2,000 face 0.4% MDR
Big news for digital payments: Starting October 15, select merchant transactions above ₹2,000 made via UPI will carry a 0.4% merchant fee (MDR), ending an over six-year period of free UPI payments.
After the announcement, shares of cash management companies like Radiant Cash Management and CMS Info Systems shot up. Investors are betting this change could mean more people turn back to cash withdrawals.
Analysts: UPI fee could yield ₹16,000-17,000cr
Analysts say this new fee could create a massive revenue pool, ₹16,000 to 17,000 crore, for banks and payment firms since they will be able to charge merchants from October 15 for accepting UPI payments.
It's seen as a positive shift that might make digital payments more sustainable in the long run and open up fresh revenue lines for banks and payment firms.