New Delhi, Oct. 13 -- UPI is no longer merely a payment product. It is digital economic infrastructure. In August alone, UPI processed 24.51 billion transactions worth Rs.29.82 trillion, according to the National Payments Corporation of India (NPCI).

The government's new framework, effective 15 October, imposes a 0.4% merchant discount rate (MDR) on specified person-to-merchant (P2M) transactions above Rs.2,000, capped at Rs.300 for transactions of Rs.75,000 and above. Person-to-person (P2P) transactions remain free, as do payments up to Rs.2,000 and transactions covered by the zero-MDR framework for small merchants. About 96% of P2M transactions are expected to remain unaffected.

India introduced zero MDR in January 2020 to accelerate ...