UPI MDR Charges Live Updates: UPI free for P2P and 96% of merchant transactions; 0.4% fee on merchant payments above Rs 2,000

UPI MDR Charges Live Updates: The government has introduced a new Merchant Discount Rate (MDR) on certain UPI payments, marking a shift from the zero-charge framework that has governed the digital payments system for nearly six years. From October 15, a 0.4 per cent MDR will apply to person-to-merchant (P2M) UPI transactions above Rs 2,000, subject to a maximum charge of Rs 300. However, consumers will not have to pay the MDR directly. Person-to-person (P2P) transactions will continue to remain free, while small-value merchant payments up to Rs 2,000 will also remain outside the new charge. The government has announced separate rates and exemptions for sectors such as railways, fuel, telecom, insurance, utilities and education. Small merchants receiving up to Rs 1 lakh a month through UPI QR codes will also remain exempt. Follow this live blog for all updates, key changes, FAQs and implications of the new UPI MDR framework.Also Read: NSE IPO Live Updates: India's largest exchange opens for subscription tomorrow - Check issue size, price band, GMP, key dates