New Delhi, Sept. 21 -- The National Payments Corporation of India (NPCI) last week announced merchant discount rate (MDR) for select UPI transactions, with the official release stating that there is "no impact on any person-to-person transactions".

In a detailed FAQ document, the organisation said MDR charge of 0.4% would apply on Person-to-Merchant (P2M) UPI transactions above Rs.2,000, from 15 October. However, charges are capped at Rs.300 per transaction for payments of Rs.75,000 and above.

Further, UPI will continue to remain completely free for all P2P transactions, irrespective of the amount transferred, it added. A Finance Ministry statement noted, "Therefore, UPI transactions accounting for 70% of the total transaction value wil...