New Delhi, Sept. 23 -- The Reserve Bank of India (RBI) and the finance ministry have asked banks to ensure adequate cash availability at ATMs from 15 October as a cautionary measure, when new charges on select UPI transactions take effect, according to two people aware of the matter.

"The use of cash through ATMs may see a temporary increase as people and merchants adjust to the new Merchant Discount Rate (MDR) regime for certain UPI transactions,'' the people said.

A 0.4% MDR will apply to specified person-to-merchant (P2M) UPI transactions above Rs.2,000, subject to a maximum charge of Rs.300 for transactions of Rs.75,000 and above. Person-to-person transactions will remain free, as will P2M transactions up to Rs.2,000. Earlier, Mint ...