GENERAL14 Sept 2026
Govt paves way for banks to levy charges on UPI payments above ₹2,000
The government has cleared the way for banks to charge a fee on UPI payments above ₹2,000. This fee is called MDR, or merchant discount rate, and merchants pay it to banks and payment service providers for processing digital payments. If you run a business that accepts UPI, your payment costs could go up. Check with your bank or payment provider about what it means for you.
Key Statutory Highlights
- The government has paved the way for banks to levy charges on UPI payments above ₹2,000.
- This charge is known as MDR, which stands for merchant discount rate.
- MDR is the fee merchants pay to banks and payment service providers for processing digital payment transactions.
Actionable Advice for Taxpayers / Founders:If you accept UPI payments, ask your bank or payment service provider whether these charges will apply to you and how much they could add to your costs. Treat this as a heads-up rather than a confirmed outcome.
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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