๐ณ Banks asked to keep UPI MDR charges from consumers
The Centre plans to task the Indian Banksโ Association with public awareness campaigns regarding the new MDR. This move comes as a 0.4% MDR will be applied to some person-to-merchant UPI transactions over โน2,000 starting October 15. This fee aims to ensure the long-term financial sustainability of the UPI ecosystem, funding infrastructure like cybersecurity. However, the government directs banks to prevent these merchant costs from being passed onto consumers for smaller transactions. Furthermore, person-to-person UPI transactions and those under โน2,000 will remain free from this levy. ๐ธ