India, Sept. 16 -- The new UPI framework does not change charges for person-to-person (P2P) transactions. According to the Finance Ministry, individuals will continue to make P2P UPI payments completely free, irrespective of the amount transferred. Payments to merchants up to Rs 2,000 and transactions covered under the zero-MDR framework for small merchants will also remain free.

Under the revised framework, MDR will apply only to specified merchant transactions above Rs 2,000. A nominal MDR of 0.4% will apply to eligible P2M transactions, with a maximum charge of Rs 300 for transactions of Rs 75,000 and above. The government estimates that around 96% of P2M transactions will remain unaffected.

Certain essential and thin-margin sectors...