TechnologyTop StoryTop StoryLatest News
UPI MDR Charges Delayed Until After Diwali
Sentiment: NeutralHigh Priority
What Happened?
The rollout of Merchant Discount Rate (MDR) charges on UPI payments has been postponed until after Diwali, following trader appeals. The new charges will apply to high-value transactions above Rs 2,000.
Key points
- MDR charges on select UPI payments postponed until after Diwali.
- Charges will apply to transactions above Rs 2,000, with a fee of 0.4%.
- Customers will not pay MDR charges; only merchants will be charged.
- Payments up to Rs 2,000 remain free of MDR.
- NPCI aims to cover UPI operational costs with these charges.
Key insights
- The delay allows merchants to adjust their payment systems before incurring new costs.
- High-value transactions will contribute to UPI's operational sustainability.
- The framework aims to enhance digital payment infrastructure in underserved areas.
Why it matters
The decision impacts merchants and consumers during the busy festive season.
Source
India Today
