India, Sept. 15 -- UPI payments above Rs.2,000 made to merchants will attract a 0.4% Merchant Discount Rate (MDR), according to detailed guidelines issued by the National Payments Corporation of India (NPCI) on Tuesday.

This comes after the Centre had on September 14 notified that UPI transactions up to Rs.2,000 will attract zero MDR.

The new rules apply only to person-to-merchant (P2M) transactions above Rs.2,000. There will be no charges on person-to-person (P2P) UPI transactions, irrespective of the transaction amount.

For transactions of Rs.75,000 and above, the MDR will be capped at Rs.300 per transaction, according to the notification.

The 0.4% charge will be shared among banks, payment apps and other partners in the payment eco...