India, Sept. 17 -- UPI is one of the cheapest ways for Indian merchants to collect digital payments. Now, the economics of India's biggest digital payment rail is set to change from October 15.

After this date, under the new merchant discount rate (MDR) framework, banks and payment providers will charge 0.4% on UPI person-to-merchant (P2M) transactions above Rs.2,000, capped at Rs.300 for transactions of Rs.75,000 and above.

The new regime exempts merchants receiving up to Rs.1 Lakh a month through UPI QR codes.

Earlier, merchants with annual turnover between Rs.1 Cr and Rs.1.5 Cr according to media reports were expected to fall under the safe-harbour threshold.

If a merchant receives more than Rs.1 lakh for three consecutive months, ...