GENERAL18 Sept 2026
MDR apprehension unlikely to spur higher cash usage: RBI Deputy Governor
From October 15, a 0.4% Merchant Discount Rate (MDR) will apply to person-to-merchant Unified Payments Interface (UPI) payments above ₹2,000. Merchants pay it, not customers, and it is capped at ₹300 for transactions of ₹75,000 or more. Person-to-person payments and most daily merchant payments stay free. RBI Deputy Governor Shirish Chandra Murmu said fears of higher cash use are just an initial apprehension.
Key Statutory Highlights
- From October 15, a 0.4% MDR will apply to person-to-merchant UPI payments above ₹2,000.
- The charge is paid by merchants, not consumers, and is capped at ₹300 for transactions of ₹75,000 or more.
- RBI Deputy Governor Shirish Chandra Murmu said the worry that MDR would push up cash use is only an initial apprehension.
Actionable Advice for Taxpayers / Founders:If you accept UPI payments, review your payment records and pricing before October 15, and speak to your CA about how this small merchant-side charge may affect your margins.
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: