GENERAL16 Sept 2026
No foreign influence behind MDR on UPI payments above ₹2,000: FinMin
From 15 October, UPI payments to merchants above ₹2,000 will carry a 0.4% Merchant Discount Rate (MDR), paid by merchants, not customers, and capped at ₹300. The finance ministry says MDR is not a tax and denies any foreign influence behind it. Person-to-person transfers and most everyday payments stay free, so check how this affects your business costs.
Key Statutory Highlights
- From 15 October, a 0.4 per cent MDR applies to person-to-merchant UPI payments above ₹2,000, capped at ₹300.
- The charge is paid by merchants, not consumers, and payments between individuals stay free.
- The finance ministry said MDR is not a tax or a charge collected by the government or NPCI, and denied any foreign influence behind the decision.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI from customers, review your payment costs for transactions above ₹2,000 and consider discussing the impact with your CA before 15 October.
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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