The National Payments Corporation of India (NPCI) will introduce a 0.4% merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions exceeding Rs2,000 ($20.8).
The charges will be applied from 15 October.
The measure follows a legislative amendment passed earlier this week that authorised fees on UPI transactions above the threshold. Customers will not pay the MDR directly, and banks have been advised to ensure that merchants do not pass the charge on to customers.
NPCI said revenue from the levy will support investment in system resilience, technological innovation, cybersecurity, and customer service.
UPI, India's instant payments system, processed 24 billion transactions worth $311bn in August, according to a Reuters report.
#payments #transactions #India
The charges will be applied from 15 October.
The measure follows a legislative amendment passed earlier this week that authorised fees on UPI transactions above the threshold. Customers will not pay the MDR directly, and banks have been advised to ensure that merchants do not pass the charge on to customers.
NPCI said revenue from the levy will support investment in system resilience, technological innovation, cybersecurity, and customer service.
UPI, India's instant payments system, processed 24 billion transactions worth $311bn in August, according to a Reuters report.
#payments #transactions #India
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