UPI Rule Change: 0.4% Charge Proposed on Payments Above ₹2,000

The proposed introduction of a 0.4% Merchant Discount Rate (MDR) on certain UPI transactions above Rs 2,000 has led to concerns that UPI payments could become more expensive for ordinary users.

The National Payments Corporation of India (NPCI) on Tuesday said that it has revised Merchant Discount Rate (MDR) framework for select UPI transactions, under which charges will apply to certain merchant payments above Rs 2,000, while small merchants and low-value transactions will continue to benefit from zero MDR.