GENERAL17 Sept 2026
Parliament Standing Committee didn’t discuss MDR charges on UPI transactions, says Gaurav Gogoi
NPCI has introduced a 0.4% Merchant Discount Rate (MDR) on UPI payments above ₹2,000 per transaction, which merchants must pay banks and payment processors. Congress MP Gaurav Gogoi says the Parliament Standing Committee on Finance never discussed this. Small merchants, vendors and entrepreneurs will bear the extra cost. Keep an eye on your UPI collections over ₹2,000 and review your payment costs.
Key Statutory Highlights
- NPCI issued a circular on 15 September 2026 introducing a 0.4% MDR that most merchants must pay banks and payment processors on UPI payments above ₹2,000 per transaction.
- Congress MP Gaurav Gogoi said the Parliament Standing Committee on Finance did not discuss the decision, and government representatives gave no specific or satisfactory answers on why the charges are needed.
- Gogoi said the new charges hurt small Indian merchants, vendors and entrepreneurs, and he appealed to the government to roll them back.
Actionable Advice for Taxpayers / Founders:Check how many of your UPI collections are above ₹2,000 per transaction, since these may now attract a 0.4% charge, and consider discussing the cost impact with your CA before adjusting your pricing.
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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