Merchants will now have to pay a 0.4 percent Merchant Discount Rate on UPI payments above Rs 2,000 starting October 15.
The National Payments Corporation of India clarified the decision following recent government guidelines on digital transaction charges.
The maximum fee per transaction has been capped at Rs 300, ensuring that even large transactions above Rs 75,000 will not attract higher charges.
Meanwhile, normal peer-to-peer transfers between individuals and small merchant transactions up to Rs 2,000 remain completely free of cost.
