Govt imposes 0.4% charge on UPI payments over ₹2,000 made to shops & businesses

Finance Ministry announced on Tuesday its decision to levy a 0.4% merchant discount rate (MDR) on person-to-merchant (P2M) transactions worth over ₹2,000. The order capped MDR at ₹300/transaction for payments worth ₹75,000 and above and said the commission will be shared amongst banks and app providers. All person-to-person transactions, involving payments made to other people, will remain free.