Explained: All About New UPI Merchant Fees On Transactions Above Rs 2,000
New Delhi: Unified Payments Interface (UPI) transactions is all set to attract a fractional charge above Rs 2,000 for merchant payments from October 15 this year. Though the service does not charge on person-to-person transactions, the new framework would make a 0.4% charge on transactions made by consumers to merchants.
Notably, while the charge is capped at Rs 300 per transaction, one that the Finance Ministry has advised banks to ensure merchants don’t pass on to consumers.
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From the above mentioned date, the merchants accepting UPI payment above Rs 2,000 will have to pay a fee under the new framework. Notably, the customers are spared from this change, though there are fears of additional price that the merchant may incur on the products they sell.
The government made the clarification that the new framework would not affect general public who make UPI payments.
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Under the new framework, several things remain free, including transactions of any amount between individuals. Receiving any amount of money is free, and merchant payments of up to Rs 2,000 are also free. Small merchants can receive up to Rs 1 lakh per month with zero MDR, and there will be no charge or quota for individuals or anything like a monthly UPI usage limit.
