business πΈ UPI fees coming soon, check the fine print
Some UPI payments will start having fees from October 15, impacting merchants rather than individual users. The new Merchant Discount Rate (MDR) applies only to merchant payments exceeding βΉ2,000. While 96% of transactions are below this limit, the remaining 4% account for 67% of the payment value. Merchants are concerned about potential future fee hikes and thin margins. This MDR fee is not a government tax, meaning the collected money won't go to the government.