UPI Payments Above ₹2,000 Face MDR: Who Pays The New Fee?

A newly notified framework introduces a 0.04% Merchant Discount Rate on UPI merchant transactions above ₹2,000. But consumers will continue to use UPI for free, and person-to-person transfers remain outside the new charge. So who actually pays the fee, how does the MDR work, and which transactions are covered? Business Today’s Karishma Asoodani breaks down the new UPI framework, the impact on merchants and why regulators may need to ensure that the cost is not passed on to consumers.