UPI payments above ₹2,000 to face 0.4% MDR
The National Payments Corporation of India announced that from October 15, merchants will incur a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding ₹2,000, capped at ₹300 for payments over ₹75,000. This change aims to establish a sustainable UPI ecosystem, potentially generating ₹22,000 crore in annual revenue by FY28. Transactions under ₹2,000 will remain free.