INCOME TAX21 Sept 2026
How does MDR on UPI compare to charges on traditional debit and credit cards? Here's what NCPI's FAQs say… | Mint
NPCI will levy a merchant discount rate (MDR) on some UPI payments. From 15 October, person-to-merchant transfers above ₹2,000 carry a 0.4% charge, capped at ₹300 for payments of ₹75,000 and above. Person-to-person transfers stay free, and credit-linked UPI follows card rules. So most everyday payments by individuals are unaffected. If you run a shop, check your settlement reports once the change starts.
Key Statutory Highlights
- An MDR of 0.4% will apply on person-to-merchant UPI transactions above ₹2,000, starting 15 October.
- The charge is capped at ₹300 per transaction for payments of ₹75,000 and above.
- UPI stays completely free for all person-to-person transactions, whatever the amount transferred.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI payments, review your settlement reports once the change starts on 15 October to see how the MDR affects your costs, and keep those records for your books.
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
Share: