RBI Governor Sanjay Malhotra has said it is too early to conclude how proposed Merchant Discount Rate (MDR) charges on UPI business transactions above Rs 2,000 will be implemented, stressing that the cost of maintaining the payments ecosystem has to be borne by someone. Under the proposal being considered, MDR of 0.25% to 0.4% could be levied only on business (merchant) UPI transactions above Rs 2,000. The government has not yet announced when the proposed MDR framework, if approved, would come into effect. For example, if you pay ₹2,000 at a shop using UPI and MDR applies, the merchant may have to pay a small percentage of that amount as a transaction fee. Under the proposal being considered by the government, MDR could apply only to merchant UPI transactions above ₹2,000, while person-to-person (P2P) UPI transfers are expected to remain free.