UPI Payments Above ₹2,000: New MDR Rules, Merchant Impact & What Changes For Users

UPI payments above ₹2,000 could soon attract Merchant Discount Rate (MDR) charges, as the Finance Ministry opens the door for fees on higher-value digital transactions. Banks cannot levy charges on UPI payments up to ₹2,000, while the NPCI steering committee is expected to decide the applicable MDR and transactions covered. Surbhi, Business Today, explains the proposed 0.4% MDR, its impact on person-to-merchant payments, and why around 96% of UPI transactions may remain unaffected. The discussion also looks at the earlier MDR structure, RuPay debit cards, merchant costs, and what the proposed changes could mean for India’s digital payment ecosystem.