INCOME TAX17 Sept 2026
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From 15 October, merchants will pay a merchant discount rate (MDR) on UPI payments above ₹2,000. Mutual fund lumpsum investments and broker inflows through UPI face 0.02%, while insurance pays a flat ₹5. Low-cost index funds charging 10 to 20 basis points may pass this on to investors. NEFT or RTGS transfers cost nothing, so consider them. Check with your broker or fund house about added charges.
Key Statutory Highlights
- From 15 October, merchants will pay a merchant discount rate (MDR) of 0.40% on UPI transactions above ₹2,000.
- Lumpsum mutual fund investments made through UPI and broker inflows will be charged 0.02%, while insurance pays a flat ₹5 per transaction.
- Low-cost index funds charge 10 to 20 basis points as management fees, so 2 basis points is a high cost for such funds to absorb.
Actionable Advice for Taxpayers / Founders:Ask your broker or mutual fund house whether these UPI charges will be passed on to you, and compare NEFT or RTGS, which the source says cost nothing. Treat any answer as indicative, since how each firm recovers the cost may differ.
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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