BharatPe backs UPI MDR plan charging 0.4% on merchant payments above ₹2,000
BharatPe said the proposed UPI MDR framework would keep consumer payments free and protect small merchants while creating funding for payment infrastructure. The 0.4% charge on merchant UPI transfers above ₹2,000 is slated to take effect on October 15; BharatPe says 96% of P2M transactions would remain unaffected.
What happened
BharatPe supports the new UPI MDR framework, saying it preserves free consumer payments and protects small merchants while funding payments infrastructure and
Key facts
- 0.4% MDR fee
- Rs 2,000 transaction threshold
- October 15 implementation
- 96% of P2M transactions unaffected
- nearly six years of free UPI payments
What changed
BharatPe supports the new UPI MDR framework, saying it preserves free consumer payments and protects small merchants while funding payments infrastructure and acceptance. The government will levy 0.4% on merchant UPI transfers above Rs 2,000 from October 15.
Why this matters
BharatPe’s endorsement signals a push to monetize larger UPI merchant payments while preserving free consumer use and minimizing disruption for small sellers.
What to watch
- Formal government, NPCI or RBI notification confirming the October 15 effective date, rate, merchant categories and threshold treatment.
- Clarification on whether the ₹2,000 threshold applies per transaction, aggregate merchant settlement, or specific P2M use cases.
- Public opposition from merchant associations, ecommerce platforms, large-format retailers or consumer groups.
- Changes in UPI transaction-value mix, especially the share of P2M payments above ₹2,000.
- Acquirer pricing announcements, merchant surcharge restrictions and evidence of payment-method steering at checkout.