INCOME TAX18 Sept 2026
Investing via RBI Retail Direct platform: Who will pay UPI MDR from 15 October? Experts weigh in | Mint
From 15 October, a Merchant Discount Rate of 0.02% applies to capital market transactions, capped at ₹300 each. This affects investors buying government securities through RBI Retail Direct using UPI (Unified Payments Interface). The charge sits with the merchant, not you, but experts aren't sure who finally pays it. The RBI says payment gateway charges are yours, so check before investing.
Key Statutory Highlights
- From 15 October, the Merchant Discount Rate for capital market transactions is 0.02% of the transaction value, capped at ₹300.
- RBI Retail Direct lets you buy government securities directly without a broker, and UPI is available as a payment method.
- One expert says the MDR cannot be passed on to the investor, while the RBI states that applicable payment gateway charges will be borne by the investor.
Actionable Advice for Taxpayers / Founders:Before your next RBI Retail Direct investment, check with your bank or the platform about any payment charge that may apply to UPI payments, and keep a record of what you are told.
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: