The Centre said person-to-merchant (P2M) transactions of up to ₹2,000 would be exempt from Merchant Discount Rate (MDR). NCPI tells Supreme Court zero MDR for UPI is unsustainable amid massive growth, proposing a targeted 0.4% MDR on high-value P2M transactions. Unified Payments Interface (UPI) transactions between individuals will remain completely free irrespective of the transaction value, while a nominal Merchant Discount Rate (MDR) of 0.4% will apply.