The government has exempted UPI and RuPay debit card transactions up to ₹2,000 from any merchant discount rate, while reinstating a fee for transactions above that threshold.
To enable the change, the Payment and Settlement Systems Act was amended, allowing the regulator to impose a nominal MDR on a limited set of merchants for higher‑value UPI payments.
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The National Payments Corporation of India (NPCI) is slated to issue a detailed directive outlining the exact MDR rates and the categories of merchants to which they will apply.
