The debate over digital payment charges in India has reignited after the National Payments Corporation of India (NPCI) notified a 0.4% Merchant Discount Rate (MDR) on specified Person-to-Merchant (P2M) UPI transactions above ₹2,000.
While Person-to-Person (P2P) payments, small-value vendor transactions up to ₹2,000, and small merchants receiving under ₹1 lakh monthly remain 100% free, the new framework aims to establish a sustainable revenue model for payment aggregators, fintech apps, and acquiring banks to fund cybersecurity, infrastructure resiliency, and fraud prevention.
In this video, we break down the mechanics of the new MDR structure, examine who pays the fee, discuss regulatory perspectives from the Reserve Bank of India (RBI) and Finance Ministry, and evaluate what this means for consumers, small business owners, and India’s broader digital economy.
#UPI #DigitalPayments #UPICharges #MDR #Fintech #NPCI #IndianEconomy #BusinessNews #personalfinance
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