Government Introduces New UPI Charges: What You Need to Know

The Indian government has introduced a new framework for UPI payments, implementing a 0.4% fee on transactions over Rs 2,000 for merchants, with a cap of Rs 300 for larger payments. This marks the end of the zero-MDR policy that has been in place since January 2020. While essential sectors will face fixed fees, small merchants earning up to Rs 1 lakh monthly remain exempt. The changes aim to balance the sustainability of digital payments while protecting smaller businesses. Learn more about how these updates will affect UPI transactions.