UPI still free, but there's a catch: Who ultimately pays & could cash make a comeback?

NEW DELHI: Will UPI payments no longer be free? Will you have to pay extra for transactions above Rs 2,000? The new MDR rules have triggered a wave of questions over what exactly changes from October 15 and who will ultimately pay for it.The government has clarified that consumers will not be charged for using UPI. The change applies to specified merchant transactions above Rs 2,000, which will attract a 0.4% Merchant Discount Rate (MDR).But with merchants now having to bear a cost on some transactions, questions remain over whether they will absorb it or eventually factor it into prices.What is changing from Oct 15?The National Payments Corporation of India (NPCI) has introduced a 0.4% Merchant Discount Rate (MDR) on specified person-to-merchant (P2M) UPI transactions above Rs 2,000. For transactions of Rs 75,000 and above, the MDR will be capped at Rs 300 per transaction.