Business
UPI Payments to Remain Free for Person to Person transactions; MDR Applicable Only on Large-Value Merchant Transactions – Finance Ministry
For high-value merchant transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction.
Picture : @UPI_NPCI/X
The Union finance ministry has clarified that Unified Payments Interface (UPI) transactions between individuals will remain completely free, irrespective of the transaction value.
It said no charges would be imposed on person-to-person (P2P) payments. However, a nominal Merchant Discount Rate (MDR) of 0.4 percent will apply to person-to-merchant (P2M) UPI transactions above Rs 2,000.
“UPI Payments to Remain Free for Person to Person transactions; MDR Applicable Only on Large-Value Merchant Transactions. No charges on person-to-person (P2P) transaction, irrespective of transaction value,” the ministry statement said.
For high-value merchant transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction.
The ministry said the revised framework applies only to large-value merchant transactions and does not affect free P2P payments. –