Centre fixes 0.4% fee on UPI transactions above Rs 2,000 from October 15

Online transactions over Rs 2,000 via UPI will face a 0.4% MDR capped at Rs 300 from October 15. The levy applies only to merchant transactions, not P2P transfers. Industry reactions and exemptions for small vendors are detailed.

The MDR will be applicable on person-to-merchant (P2M) transactions only. All person-to-person (P2P) UPI transactions will remain completely free, irrespective of the amount transferred.