UPI MDR: What changes for merchants, consumers and payments above Rs 2,000 from October 15

Ending nearly six years of zero-fee UPI merchant payments, the government on Tuesday introduced a 0.4 per cent Merchant Discount Rate (MDR) on person-to-merchant (P2M) UPI transactions above Rs 2,000, with the new framework coming into effect from October 15.

The government, however, has ring-fenced person-to-person payments and low-value merchant transactions from the levy, while stressing that consumers will continue to use UPI free of cost.