India, Sept. 15 -- After months of anticipation, UPI operator National Payments Corporation of India (NPCI) has introduced the merchant discount rate (MDR) fees framework for select high-value UPI transactions. MDR on UPI will take effect precisely one month from today, that is, October 15.

Under the framework, standard person to merchant (P2M) transactions above Rs.2,000 will attract an MDR of 0.4%, capped at Rs.300 for high-value payments of Rs.75,000 and above. However, peer-to-peer (P2P) transactions will continue to be free.

Further, small merchants, including street vendors, receiving up to Rs.1 Lakh per month through UPI QR codes under the person to person merchant (P2PM) category will continue to enjoy zero MDR on all transactio...