UPI payments above ₹2,000 will face 0.4% MDR for merchants
Business
UPI payments above ₹2,000 will have a 0.4% merchant discount rate (MDR), meaning merchants pay a small fee for bigger digital transactions.
The good news? UPI transactions of up to ₹2,000 and payments made through RuPay debit cards are still totally free, so your regular chai or cab rides won't cost extra.
MDR could raise ₹16,000cr annually
This new MDR could bring in about ₹16,000 crore each year for the digital payment ecosystem.
The money gets split between banks and payment service providers like Yes Bank and Axis Bank, helping keep the system running smoothly and sustainably.
NPCI (the folks running UPI) also gets a tiny cut per transaction to keep things ticking behind the scenes.