New Delhi, Oct. 4 -- The proposed 0.4% Merchant Discount Rate (MDR) on UPI Person-to-Merchant (P2M) transactions above Rs.2,000 is set to take effect from 15 October, with merchants liable to pay it.

While merchants have expressed concerns about bearing the charge, a new LocalCircles survey suggests consumers may also resist paying it if merchants pass the cost on to them.

The LocalCircles survey, which received over 67,000 responses from UPI users across 291 districts, found that most consumers would switch to another payment mode if an additional UPI fee is charged on transactions above Rs.2,000.

According to the survey, only 14% of respondents said they would continue paying through UPI and bear the additional amount if a merchant c...