From October **, qualifying UPI purchases above &#****;*,*** (~$**) will incur a *.* per cent merchant fee. For India’s apparel sector, the real question is not whether UPI remains free but how much fashion spending crosses that threshold just as festive demand peaks. UPI’s new MDR does not hit every apparel sale. Its importance lies in where it applies, with qualifying baskets above &#****;*,*** (~$**) coming under the new charge at a time when multi-item festive purchases can lift checkout values and sector margins are already under pressure.
Santosh Katariya, president, Clothing Manufacturers Association of India (CMAI) said: “Introducing MDR on UPI at the start of festive season could not have come at a more challenging time for the industry.”
