UPI TRANSACTIONS over Rs 2,000 will attract a fee of 0.4 per cent from October 15, and this will be paid by merchants, the National Payments Corporation of India (NPCI) said Tuesday. For instance, a merchant will pay Rs 40 when it receives Rs 10,000 via UPI.
For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction. The charge will be paid by merchants to their acquiring banks and cannot be passed on to customers.
For example, on a Rs 3,000 UPI payment, the merchant would pay Rs 12 as MDR at the 0.4% rate. On a Rs 50,000 payment, the MDR would be Rs 200. On a Rs 1 lakh transaction, the 0.4% calculation would come to Rs 400, but the merchant would pay Rs 300 because of the cap applicable to transactions of Rs 75,000 and above.
For merchant categories like railways, telecom services, insurance, and fuel, the NPCI stated a flat rate of Rs 5 will be levied on UPI payments above Rs 2,000.
