NPCI Sets 0.4% MDR On P2M UPI Transactions Over ₹2,000

by · Inc42

SUMMARY

  • P2M transactions above ₹2,000 will attract an MDR of 0.4%, capped at ₹300 when the payment value reaches ₹75,000, while P2P transactions and merchants who receive up to ₹1 Lakh per month will be exempted
  • The new policy comes after the payments industry lobbied the government to introduce MDR on select merchant payments in order to enable a direct revenue stream from UPI transactions
  • A flat fee of ₹5 will be charged in case of high-value UPI payments for critical public services and utilities, while capital markets transactions will incur a lower MDR fee of 0.02% capped at ₹300