The National Payments Corporation of India (NPCI) will introduce a 0.4% merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions exceeding Rs2,000 (approximately $20.8), effective from October 15. Customers will not pay the MDR directly, and banks have been advised to ensure that merchants do not pass the charge on to customers. The Reserve Bank of India (RBI) supports this move, stating it will strengthen the long-term sustainability of India's digital payments ecosystem.