Government clarifies merchants never guaranteed 0 MDR on UPI forever
The government has clarified that merchants were never guaranteed zero Merchant Discount Rate (MDR) on UPI payments forever.
This comes after some pushback on the new rule: now, if you pay over ₹2,000 via UPI at a shop, there might have been a small fee.
The revised MDR framework had been under consideration well before its introduction and was set up after talking with stakeholders.
UPI P2M transactions under ₹2,000 free
Don't worry if you're just buying coffee or splitting bills. UPI P2M transactions of up to ₹2,000 still have no extra charges.
The new fees mainly target bigger purchases to help keep the digital payments system sustainable and fair for everyone.
The government says this change supports financial inclusion while making sure most everyday transactions stay easy and free.