GENERAL24 Sept 2026
Datanomics: PSBs lead UPI senders, private banks top payment receivers
A proposed UPI fee, the Merchant Discount Rate (MDR), is on the table. Public sector banks start most UPI payments, while private banks receive most of them. Under the plan, the bank sending the money gets the largest share of that fee. So if your business accepts UPI, which bank settles your payments matters more. Wait for final rules before switching banks.
Key Statutory Highlights
- Public sector banks dominate UPI transactions that are initiated, while private banks lead on the payment-receiving side.
- The proposed UPI MDR will give remitter banks the largest share of the revenue.
- Private banks dominate merchant-side UPI transactions.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, keep an eye on the final MDR rules and check with your bank or a tax professional before changing your payment or settlement setup.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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