UPI merchant payments up to ₹2,000 remain free; MDR review planned for higher values
The government said merchants will continue to face no MDR on UPI transactions up to ₹2,000. A panel will determine the fee framework for higher-value payments, a policy signal for retailers’ digital-payment acceptance costs.
What happened
RBI filed a caveat in Tata Sons’ listing dispute after rejecting its CIC-registration surrender request. Separately, the government said UPI merchant payments
Key facts
- ₹2,000
- 96%
What changed
RBI filed a caveat in Tata Sons’ listing dispute after rejecting its CIC-registration surrender request. Separately, the government said UPI merchant payments up to ₹2,000 remain free, while a panel will determine MDR treatment for higher-value transactions.
Why this matters
Retailers retain zero UPI acceptance costs on transactions up to ₹2,000, while preparing for possible MDR exposure on higher-value baskets.
What to watch
- Panel composition, consultation timeline and whether recommendations distinguish online, offline, QR, intent and credit-on-UPI transactions.
- Any announced MDR cap, threshold basis per transaction versus cumulative merchant volume, and effective-date transition period.
- Government budget allocations or payment-industry subsidy commitments for UPI infrastructure.
- Statements from RBI, NPCI, banks, payment aggregators and large merchant associations on sustainable economics.
- Changes in PSP incentives, settlement terms, transaction limits or merchant onboarding fees.