GENERAL16 Sept 2026
'No question of rethinking 0.4% UPI MDR above ₹2,000': Govt official
The government has said it will not rethink the 0.4% MDR, or merchant discount rate, on Unified Payments Interface (UPI) payments above ₹2,000. This charge stays inside the merchant payment ecosystem, so consumers are not billed for it. If you accept UPI at your shop, track your settlement amounts and margins on bigger payments, and ask your payment provider how it applies to you.
Key Statutory Highlights
- The government has ruled out any rethink of the 0.4% MDR on UPI payments above ₹2,000.
- The MDR will apply within the merchant payment ecosystem, not outside it.
- The MDR will not be charged to consumers.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI payments, go through your recent settlement statements and ask your payment provider how this MDR is being applied on payments above ₹2,000, so you can plan your pricing accordingly.
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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