India, Oct. 13 -- The UPI and Services Steering Committee on Tuesday decided to implement the Merchant Discount Rate (MDR) on select person-to-merchant (P2M) UPI transactions immediately after Diwali, according to a statement by NPCI on X.

National Payments Corporation of India (NPCI)'s decision takes into account the festive season, with the implementation date to be notified separately, the statement said.

MDR is a fee charged to merchants for processing digital payments. The proposed move will apply only to select merchant transactions, though the statement did not specify which categories of transactions would attract the charge.

Under the new framework, merchants accepting UPI payments above Rs.2,000 would have to pay a fee of 0.4...