Goa, Oct. 13 -- The National Payments Corporation of India (NPCI) has decided to introduce Merchant Discount Rate (MDR) charges on select person-to-merchant (P2M) UPI transactions immediately after Diwali. The UPI and Services Steering Committee took the decision on Tuesday, taking the festive season into account. The exact implementation date will be announced separately.

Under the proposed framework, eligible merchant transactions above Rs.2,000 will attract a fee of 0.4% of the transaction value, capped at Rs.300 per transaction. Payments to merchants in four specified categories - railways, telecom services, insurance and fuel - will attract a flat fee of Rs.5 per transaction.

Person-to-person (P2P) UPI transfers will remain exempt ...