Goa, Sept. 15 -- The Indian government has clarified the rules governing higher-value digital transactions, announcing that a fractional charge will apply to Unified Payments Interface (UPI) merchant payments exceeding Rs.2,000 starting October 15, 2026. However, authorities reiterated that person-to-person (P2P) transfers and low-value purchases will remain completely free for consumers.

Under the new Merchant Discount Rate (MDR) framework issued by the National Payments Corporation of India (NPCI), a 0.4% fee will be levied on merchant transactions over Rs.2,000, capped at Rs.300 per transaction. For specific essential categories-including Indian Railways, telecom services, insurance, and fuel stations-a flat charge of Rs.5 will apply ...