0.4% MDR to apply on high-value UPI payments from October 15
The RBI clarified norms for the Merchant Discount Rate (MDR) on high-value UPI payments. From October 15, a 0.4% MDR will apply to person-to-merchant UPI transactions above ₹2,000, payable by merchants and not consumers, and capped at ₹300 for transactions of ₹75,000 or more. The RBI Deputy Governor said the levy is unlikely to push customers back to cash.
Nabka Insight
The first MDR on UPI marks a policy shift for India's digital-payments ecosystem.
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- From October 15, a 0.4% MDR on person-to-merchant UPI payments above ₹2,000.
- The charge is paid by merchants, not consumers.
- Capped at ₹300 for transactions of ₹75,000 or more.
Background
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