NPCI introduces 0.4% Merchant Discount Rate (MDR) on person-to-merchant (P2M) UPI transactions above ₹2,000, effective October 15, ending the five-year zero-MDR regime.
The charge is capped at ₹300 for payments of ₹75,000 and above; person-to-person transfers and payments up to ₹2,000 remain free.
Small vendors earning up to ₹1 lakh/month via UPI QR codes are fully exempt — a carve-out the government says shields 96% of all merchant transactions.
