πΈ RBI backs MDR on big UPI transactions
The Reserve Bank of India has approved a 0.4% Merchant Discount Rate for large UPI transactions to boost the ecosystem's sustainability. This change, notified by NPCI, applies to person-to-merchant UPI transactions exceeding Rs 2,000 starting October 15, 2026. Importantly, customer payments through UPI will remain free, and P2P transfers stay free for everyone. For high-value transactions over Rs 75,000, the MDR will be capped at Rs 300 per transaction. This move aims to fund continued tech innovation while keeping daily digital payments accessible. π°