New Delhi, Sept. 17 -- Your shopping bills might get slightly higher this festive season as retailers consider raising prices or offering fewer discounts to offset a new fee on high-value UPI transactions.

From October 15, a 0.4% Merchant Discount Rate (MDR) will apply to UPI payments above Rs.2,000, capped at Rs.300 per transaction. While the government has specifically stated that the charge cannot be passed directly on to consumers, retailers are still considering adding an additional cost that could influence final prices.

For example, if a customer pays Rs.10,000 for a purchase through UPI, the merchant-level charge would be Rs.40. Similarly, for a Rs.50,000 transaction, it would be Rs.200 (depending on the applicable cap).

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