India, Sept. 17 -- There is a newly introduced Merchant Discount Rate (MDR) structure for certain UPI transactions by the National Payments Corporation of India (NPCI). It is important to note that this is a big step forward from the past six years of MDR-free UPI transactions.

What Is UPI MDR?

MDR is the charge that a merchant pays for processing digital payments. In the newly revised system, the MDR charged for eligible P2M UPI transactions above Rs. 2,000 will be 0.4%. This MDR will not exceed Rs. 300 for transactions above Rs. 75,000. For instance, in case of an eligible transaction of Rs. 10,000, the MDR would be Rs. 40. For Rs. 1 lakh transaction, the maximum MDR will be Rs. 300.

Impact on Consumers Of UPI MDR New Rules

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