India, Sept. 16 -- P2P transfers, small payments and RuPay transactions stay free with no monthly quotas, Government clarifies

The Union Government on Tuesday introduced a 0.4 per cent fee on Unified Payments Interface (UPI) payment transfers worth more than Rs 2,000 made to merchants from October 15, while explicitly ring-fencing everyday person-to-person (P2P) transactions as well as small payments from any charge.

"Charges will apply only to person-to-merchant (P2M) transactions exceeding Rs 2,000," the Union Ministry of Finance said in a statement, adding, "A nominal Merchant Discount Rate (MDR) of 0.4 per cent will be levied on P2M transactions above Rs 2,000. This commission will be shared amongst the payment ecosystem partners, i...