New Delhi, Sept. 17 -- More than 3 crore micro units with monthly UPI turnover below Rs 1 lakh will not face merchant discount rate (MDR) charges, ASSOCHAM said, welcoming the new framework for large-value merchant transactions.
All person-to-person (P2P) UPI transactions will remain free, irrespective of the amount, while merchant payments up to Rs 2,000 will also attract no MDR. Around 96 per cent of merchant transactions will remain unaffected, with MDR applying to about 4 per cent of P2M transactions.
For specified merchant transactions above Rs 2,000, MDR will be 0.4 per cent, capped at Rs 300 for transactions of Rs 75,000 and above. Essential sectors will attract a flat Rs 5 MDR.
Nirmal K Minda, President, ASSOCHAM, said, "By creating a sustainable revenue mechanism while protecting consumers and small merchants, the framework can support greater investment in innovation, infrastructure and payment acceptance. This will further strengthen UPI's role in driving India's digital transformation."
Published by HT Digital Content Services with permission from Millennium Post.