NPCI MDR on UPI Takes Effect October 15 With Merchant Caps

Effective October 15, UPI payments to merchants above ₹2,000 will attract a 0.4% merchant discount rate capped at ₹300, with a flat ₹5 concessional MDR for specific categories like railways and utilities. Builders in payments infrastructure and merchant tech need to urgently price for a revenue-generating UPI layer; small merchants and price-sensitive consumers may default to cash, reshaping unit economics for point-of-sale and QR-based platforms.

Source: YourStory ↗