INCOME TAX16 Sept 2026
New UPI charges: what changes for your QR payments, SIPs and mutual fund investments | Mint
From 15 October, some UPI payments to merchants above ₹2,000 will carry a merchant discount rate, a fee the merchant pays its bank. It is 0.4%, capped at ₹300. You pay nothing extra, so your bill stays the same. Person-to-person transfers remain free, and mutual fund investors won't see this fee deducted from their investments.
Key Statutory Highlights
- From 15 October, person-to-merchant UPI transactions above ₹2,000 attract a merchant discount rate of 0.4%, capped at ₹300.
- Railways, telecom, insurance, credit card bills and fuel attract a flat ₹5 MDR above ₹2,000, while capital-market transactions such as mutual funds attract 0.02%.
- Person-to-person UPI transfers stay free, and UPI app providers are barred from charging customers any platform fee on UPI payments.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, factor this small fee into your pricing and confirm with your bank or payment provider how it will be collected, as the rate differs by category.
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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