UPI will charge flat Rs 5 for railways, telecom etc above Rs 2,000; 0.4% MDR won’t apply

Starting October 15, a 0.4% MDR will apply to UPI P2M transactions exceeding Rs 2,000. However, a flat charge of Rs 5 has been imposed for certain categories, including railways, fuel, telecom, and insurance. A 0.4% MDR on a Rs 2,000 payment would have been Rs 8, whereas with a Rs 5 cap, only Rs 5 would be charged.

Kolkata: UPI MDR or Merchant discount rate will kick in from October 15. The rate will be 0.4% of the transaction amount above Rs 2,000 for person-to-merchant (P2M) transactions. According to the new rules announced by the National Payments Corporation of India (NPCI), the maximum MDR for transactions of Rs 75,000 or more will be Rs 300. However, not all merchants will be charged the same. A flat MDR of Rs 5 has been set for certain categories, including railways, telecom, insurance, and fuel.

Why only Rs 5 on........

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