What is MDR? How Merchant Discount Rate will be calculated on UPI payments above Rs 2,000 under new rules

The revised UPI fee structure introduces MDR on certain high-value merchant payments. Understand how the 0.4 per cent rate works, when the Rs 300 cap applies which small vendors are exempt and why some sectors will pay a fixed Rs 5 fee.

New Delhi: The National Payments Corporation of India (NPCI) has announced a revised fee structure for certain high-value UPI payments made to merchants. Under the new rules, Person-to-Merchant (P2M) UPI transactions above Rs 2,000 will attract a 0.4 per cent Merchant Discount Rate (MDR), subject to a maximum charge of Rs 300 per transaction.

The new charge will not be paid by customers. NPCI has clarified that people making UPI payments will continue to make payments without any transaction fee under........

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