INCOME TAX15 Sept 2026
New UPI MDR rules explained: Will you pay more? What it means for users like you and me | Mint
UPI stays free for person-to-person payments under the new merchant discount rate (MDR) rules. Only some merchant payments above ₹2,000 now carry a 0.4% MDR, capped at ₹300. Payments up to ₹2,000 stay free, and small merchants earning up to ₹1 lakh a month through QR codes remain protected. You pay nothing, so keep using UPI as usual.
Key Statutory Highlights
- Person-to-person UPI transactions stay completely free, with no transaction fee, platform fee or monthly quota, whatever the amount.
- A 0.4% MDR applies only to specified merchant payments above ₹2,000, capped at ₹300 per transaction for payments of ₹75,000 and above.
- Customers do not pay MDR, and banks have been advised to make sure merchants do not pass the cost on to customers.
Actionable Advice for Taxpayers / Founders:If you use UPI as an individual, nothing changes for you — keep paying and receiving as normal. If you run a small business, check whether your merchant collections fall above the ₹2,000 mark and confirm with your bank or payment provider that no MDR is being passed on to you.
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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