INCOME TAX18 Sept 2026
New UPI MDR rules from October 15: What changes for fuel, railway tickets and 3 other key services? Explained
From October 15, UPI payments above ₹2,000 for fuel, railway tickets, telecom, insurance and agricultural inputs will carry a flat Merchant Discount Rate (MDR) of ₹5. Other person-to-merchant payments above ₹2,000 will attract 0.4%, capped at ₹300. The charge sits with the merchant, not you. Payments up to ₹2,000 and small merchants under the P2PM framework stay free.
Key Statutory Highlights
- From October 15, UPI payments above ₹2,000 for fuel, railway, telecom, insurance and agricultural inputs will attract a flat MDR of ₹5 per transaction.
- Other person-to-merchant UPI payments above ₹2,000 will face a 0.4% MDR, capped at ₹300 for transactions of ₹75,000 and above.
- Small merchants under the P2PM framework, receiving up to ₹1 lakh a month through UPI QR codes, will continue with zero MDR.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, review which of your payments fall above ₹2,000 in these categories and check with your bank or payment provider on how the ₹5 or 0.4% charge will be applied from October 15.
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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