UPI MDR Charge : The government has taken a big decision regarding the Merchant Discount Rate i.e. UPI MDR, which will be applicable after two days on UPI transactions. The government has extended the deadline for implementing MDR on UPI transactions. Now the charge will not be taken from the fixed date of its implementation i.e. 15th October. However, no information has been revealed yet regarding the date from which it will come into effect.
Read :- Big change on UPI, 0.4% MDR on payments above ₹ 2,000, know who will be charged
Let us inform you that the Central Government has fixed the merchant discount rate of 0.40% on UPI transactions of more than Rs 2000 and it was to be implemented from October 15. Before this, merchants were continuously demanding from the government to postpone the decision on charge on UPI payment. This decision was to come into effect on October 15. This fee will not be applicable on all UPI payments, but will be applicable only on certain business transactions subject to certain conditions.
Under the proposed system, there was a talk of imposing a charge of 0.4 percent on some MDR if payment of more than Rs 2000 is made through UPI. That is, if a customer buys goods worth more than Rs 2000 from a shop and pays for it through MDR, then a charge would be applicable on it, but this charge was to be paid not by the customer but by the shopkeeper i.e. the merchant. That means, if a customer buys an item worth Rs 4000, he had to pay only Rs 4000, but the shopkeeper had to pay the charges on it.