Banking

The association called for a graded structure that separates debit-linked from credit-linked UPI transactions.

According to DFS, any applicable MDR is borne by the merchant, not the customer.

UPI AutoPay payments for mutual fund SIPs, OTT subscriptions and utility bills will not attract MDR, while select one-time P2M transactions above Rs 2,000 will.

As per the erraneous gazette, Indian Bank, Bank of Maharashtra, Central Bank of India would be subject to an acquisition by State Bank of India.

The National Payments Corporation of India has set a 0.4% MDR on person-to-merchant UPI transactions above Rs 2,000 from October 15, with the charge capped at Rs 300 for payments of Rs 75,000 and above.

UPI MDR could materially boost payment-industry earnings. Goldman Sachs, Morgan Stanley, UBS and Citi estimate the revenue pool and stock impact.

UPI charges explained: Here's what changes from October 15, including the Rs 2,000 threshold, Rs 75,000 cap, small-merchant exemption and sector-wise rates.

UPI users can transfer more than Rs 2,000 to another individual without paying any levy. The government has clarified that all person-to-person transactions will remain free, meaning even Rs 50,000 transfers will not attract MDR.

For large merchant payments above Rs 2,000, a levy of 0.4% will be imposed. This fee, however, will be capped at Rs 300.

NPCI and RBI are consulting banks and payment firms on a proposed 0.4% UPI fee for high-value merchant transactions, while payments up to Rs 2,000 remain free.

On HDFC Bank, Agrawal described the bank as a "terrific franchise" and said the private banking franchise had been hurt by the uncertainty surrounding leadership transitions.

Citi's Bala, HSBC's Dave, ICICI Pru's Bagchi in the running, but brokerage says insider succession beats outsider risk amid merger drag.