RBI, NPCI reportedly weigh 0.4% fee on UPI merchant payments above ₹2,000
RBI and NPCI are reportedly consulting banks and payment firms on a possible 0.4% MDR for UPI merchant payments above ₹2,000. The proposal is not final and has no announced implementation date, but could reshape payment costs for retailers and larger-ticket UPI transactions.
What happened
RBI and NPCI are consulting banks and payment firms on a possible 0.4% MDR for UPI merchant payments above Rs 2,000. Consumer UPI payments up to Rs 2,000 remain
Key facts
- 0.4% proposed charge
- Rs 2,000 threshold
- Rs 5,000 payment; Rs 20 illustrative fee
- Rs 10,000 payment; Rs 40 illustrative fee
- 40% proposed bank revenue share
- 30% proposed payment-app revenue share
- 30% proposed payment-aggregator revenue share
- 24.51 billion UPI transactions in August
- Rs 29.82 lakh crore UPI transaction value in August
- Rs 5,000 crore to Rs 10,000 crore estimated annual industry revenue
Why this matters
If implemented, the MDR could increase strategic value for payment orchestration, acquiring, and cost-optimization platforms that help merchants manage higher-ticket UPI acceptance costs.