Sebi discusses new UPI merchant charges with NPCI as brokers flag cost concerns

The Securities and Exchange Board of India (Sebi) is discussing a new Unified Payments Interface (UPI) merchant charging framework with the National Payments Corporation of India (NPCI) as brokers express concerns about the cost implications.

The new framework mandates a merchant discount rate (MDR) of 0.4% on person-to-merchant (P2M) UPI transactions above ₹2,000. For transactions of ₹75,000 and above, the fee is capped at ₹300 per transaction.