Myth
You will pay ₹8 on every ₹2,000 UPI payment.
Fact
Customers pay ₹0. Always. MDR applies only above ₹2,000, and only to the merchant.
Four things people are getting wrong
Myth
There is 18% GST on your UPI payment above ₹2,000.
Fact
Not on your payment. NPCI's FAQ puts a 0.4% fee on the merchant and says nothing about GST on it.
Myth
Your kirana store will now charge you extra.
Fact
Small merchants (up to ₹1 lakh a month on UPI) pay zero MDR, and passing it on is not allowed for anyone.
Myth
Split your payment into ₹1,999 chunks to save money.
Fact
You were never going to pay. Splitting saves you nothing.