New UPI Fee Rules: 0.4% MDR On Payments Over Rs 2,000; Flat Rs 5 Levy For Railway, Fuel Transactions

The free UPI window has been narrowed, with the government introducing a flat levy of Rs 5 on select transactions worth over Rs 2,000. 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, the National Payments Corporation of India (NCPI) said in a statement on Tuesday.The new UPI fee rules will come into effect from Oct. 15. Select merchant categories, including railways, telecom services, insurance and fuel, will attract a flat MDR of Rs 5 per transaction for UPI payments above Rs 2,000.