The NPCI is set to implement new interchange fees for UPI transactions using pre-authorized credit lines on October 16, 2024, focusing on sustainable revenue for financial institutions. The Merchant Discount Rate (MDR) will apply only to transactions over ₹2,000, affecting about 25% of transactions, while peer-to-peer transactions remain exempt. Additionally, the UPI Circle feature allows users to delegate payment authority, offering Full (independent payments) and Partial (approval required) delegation options. These initiatives aim to enhance the UPI ecosystem by promoting sustainability, accessibility, and efficiency in digital payments.
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