No Charges on UPI Payments Up to ₹2,000; MDR Decision Pending
The NPCI on September 15 released detailed FAQs on the proposed Merchant Discount Rate (MDR) for UPI transactions above ₹2,000.
Under the latest government notification, no charges can be levied on UPI transactions of up to ₹2,000 or on payments made through RuPay debit cards. The government, however, has not yet decided whether MDR will apply to higher-value UPI transactions paid by merchants.
The notification, dated September 14, follows an amendment to Section 10A of the Payment and Settlement Systems Act, 2007, enabling a framework for imposing MDR on UPI and other notified electronic payment modes.
For now, UPI transactions remain free, regardless of the transaction amount.
