New Delhi: In a major relief to UPI users, the decision to levy a Merchant Discount Rate of 0.4 per cent on transactions over Rs 2,000 has been deferred, with NPCI Tuesday saying a new date for the implementation will be decided after Diwali.
According to the National Payments Corporation of India (NPCI) circular issued last month, a 0.4 per cent MDR was to be levied on Person-to-Merchant UPI payments above Rs 2,000 from October 15.
“UPI and Services Steering Committee today decided that, keeping in mind the festive season, Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post Diwali on a date to be notified separately,” NPCI said in a statement Tuesday.
The MDR has to be paid by merchants, not consumers and capped at Rs 300 for transactions of Rs 75,000 or more.
PTI