India introduces 0.4% UPI merchant discount rate from October 15

From October 15, India introduces a 0.4% merchant discount rate for P2M UPI payments above ₹2000, capped at ₹300 for amounts from ₹75,000. About 96% of transactions will remain free, but merchants and fuel companies threaten to stop accepting UPI. Citi estimates the new fee will create a ₹16–17 thousand crore annual market.

• 0.4% MDR applies to P2M UPI payments above ₹2000 from October 15
• Fee capped at ₹300 for transactions from ₹75,000
• In August UPI processed 24.51 billion transactions worth ₹29.82 lakh crore
• Citi estimates new revenue market at ₹16–17 thousand crore per year