Quick Summary
UPI Continues to Remain Free for Peer to Peer Transactions and 96% of Merchant Transactions The new UPI framework introduced has no impact on any person to person transactions. UPI will continue to remain completely free for all person-to-person transactions, irrespective of the amount transferred. Payments to merchants up to ₹2,000, along with transactions covered under the zero-MDR framework for small merchants, will also remain free. Consequently, approximately 96% of all P2M transactions
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FAQ :
Yes, all person-to-person (P2P) UPI transactions will remain completely free, with no charges imposed on individuals for sending or receiving money.
Payments to merchants up to £2,000 will remain free. Small merchants receiving up to £1 lakh per month via UPI QR codes will also continue to have zero MDR on all transactions.
A nominal MDR will apply only to person-to-merchant (P2M) transactions above £2,000. Specific flat MDR rates apply to essential sectors and capital market transactions.
No, MDR is a charge within the merchant payment ecosystem and is not a charge on customers. Banks have been advised to ensure merchants do not pass MDR charges onto customers.
Approximately 96% of all merchant transactions will remain unaffected, as they are either below the £2,000 threshold or covered by the zero-MDR framework for small merchants.
The framework aims to ensure the long-term sustainability of UPI, protect individuals and small merchants from additional charges, and support the continued growth and expansion of the UPI ecosystem.
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