UPI is no longer merely a payment product. It is digital economic infrastructure. In August alone, UPI processed 24.51 billion transactions worth ₹29.82 trillion, according to the National Payments Corporation of India (NPCI).

The government’s new framework, effective 15 October, imposes a 0.4% merchant discount rate (MDR) on specified person-to-merchant (P2M) transactions above ₹2,000, capped at ₹300 for transactions of ₹75,000 and above. Person-to-person (P2P) transactions remain free, as do payments up to ₹2,000 and transactions covered by the zero-MDR framework for small merchants. About 96% of P2M transactions are expected to remain unaffected.

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