EconomyPrelims + Mains
0.4% UPI Fee on Merchant Payments Above ₹2,000
NPCI will charge a 0.4% MDR for UPI merchant transactions above ₹2,000 from 15 October, but peer-to-peer transactions and transactions below ₹2,000 will continue to be free of cost. The architecture is designed to achieve equilibrium between making UPI affordable and ensuring its sustainability. Cost-passing, merchant adoption, and rural penetration are among the challenges.
