Government plans 0.4% UPI MDR above ₹2,000 from Oct. 15, with daily merchant checks
The proposed merchant discount rate would apply to UPI transactions above ₹2,000 from October 15. The government plans daily monitoring to prevent merchants from passing the fee to customers, while 5% of collections would support UPI adoption among small merchants.
What happened
India will impose 0.4% MDR on UPI merchant transactions above Rs 2,000 from October 15, with daily monitoring to prevent merchants passing costs to consumers.
Key facts
- 0.4% MDR on UPI merchant transactions above Rs 2,000
- MDR effective October 15
- 5% of MDR collections to fund small-merchant UPI adoption
What changed
India will impose 0.4% MDR on UPI merchant transactions above Rs 2,000 from October 15, with daily monitoring to prevent merchants passing costs to consumers. Five percent of collections will fund UPI adoption among small merchants.
Why this matters
Prepare to absorb or offset a proposed 0.4% UPI MDR on transactions above ₹2,000 by tightening payment-cost controls, updating POS compliance, and ensuring fees are not passed to customers.