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UPI stays free for users, but merchants to pay 0.4% fee on large transactions

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India has updated its UPI regulations by introducing a Merchant Discount Rate (MDR) for certain transactions. Consumers will continue to use UPI at no cost, but merchants will now be charged a 0.4% fee on transactions exceeding Rs 2,000. Person-to-person transfers and payments made to small merchants remain exempt from any charges. The move is aimed at ensuring long-term sustainability and encouraging innovation within the digital payments ecosystem.

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UPI stays free for users, but merchants to pay 0.4% fee on large transactions · ShortSingh