How will 0.4% MDR on UPI transactions affect product prices for consumers?

Goods and services won't get expensive for consumers as merchants will absorb the 0.4% MDR on person-to-merchant UPI transactions above ₹2,000. Shops and businesses will offset the charge through "increased footfall, higher average ticket values and reduced cash-handling risks", NPCI said. Shopkeepers have "no economic incentive to inflate retail shelf prices" as the MDR is very low, it added.