Charges, framework, dedicated fund — How MDR on UPI works for micro and small merchants, explained
Starting October 15, small merchants under the person-to-person merchant (P2PM) framework will not incur Merchant Discount Rate (MDR) on UPI payments. This framework allows vendors receiving up to ₹1 lakh monthly to accept digital payments without fees, promoting adoption in the unorganised sector. The existing QR infrastructure will remain operational, ensuring seamless transactions for merchants.