New Delhi, Sept. 15 -- The National Payments Corporation of India (NPCI) today announced merchant discount rate on UPI transactions for merchants. There is "no impact on any person-to-person transactions", as per the official release.

As per the NPCI's FAQ document, 0.4% MDR will be introduced on Person-to-Merchant (P2M) UPI transactions above Rs.2,000; with charges capped at Rs.300 per transaction for transactions of Rs.75,000 and above.

Notably, UPI will continue to remain completely free for all P2P transactions, irrespective of the amount transferred. "Therefore, UPI transactions accounting for 70% of the total transaction value will remain completely outside the MDR framework," as per the Finance Ministry statement.

According to t...