New UPI MDR keeps consumer charges off payments
In short
A new UPI merchant fee will start on October 15. Consumers will not pay extra, but merchants will pay 0.4% on qualifying payments above ₹2,000, up to ₹300.
This matters for shops and payment firms because the charge cannot be passed on to customers. The reporting does not say whether UPI apps will add any separate platform fee.
What the reporting says
A new merchant discount rate on UPI payments will take effect on October 15, with consumers not paying extra for UPI transactions. Merchants will pay a 0.4% fee on qualifying payments above ₹2,000, capped at ₹300, and they cannot pass the charge on to customers. The reporting does not say whether payment apps will add separate platform fees.
Why it matters
The reported UPI MDR change keeps consumer pricing unchanged while adding a 0.4% charge for merchants on qualifying payments above ₹2,000, capped at ₹300, from October 15. Merchants cannot pass the fee to customers, which could affect merchant payment costs and acceptance behavior. The source does not say whether UPI apps will introduce any additional fee of their own.