New UPI charges: Will you have to pay extra fees for payments to what changes for vendors, all FAQs answered

India has introduced a Merchant Discount Rate (MDR) for certain UPI payments. Person-to-person transfers remain free, and merchant payments up to ₹2000 have zero MDR. A 0.4% rate applies to merchant transactions above ₹2000, capped at ₹300 for amounts from ₹75,000.

• Person-to-person UPI transfers remain free with no amount limit
• Merchant payments up to ₹2000 retain zero MDR
• For merchant transactions above ₹2000, MDR of 0.4% may apply, capped at ₹300
• About 96% of merchant transactions will not be affected by new charges