GENERAL16 Sept 2026
Payments apps flag losses on bill payments via UPI as platform fees banned
Platform fees on Unified Payments Interface (UPI) bill payments are now banned, so payment apps say they are losing money. On bigger bills, an app keeps only Re 1 of the Rs 5 merchant discount rate (MDR), which does not cover Bharat Bill Payment System (BBPS) commissions, and small bills earn nothing. If you run a business, watch for changes in app offers or charges.
Key Statutory Highlights
- Payment apps say the Rs 1 they keep from a Rs 5 MDR on larger bill payments will not cover Bharat Bill Payment System commissions.
- Smaller UPI bill payment transactions earn the apps nothing at all.
- Platform fees on bill payments made through UPI have been banned.
Actionable Advice for Taxpayers / Founders:Keep an eye on notices from your payment app about any change in services, offers or charges on bill payments, and check with your app provider before you depend on a particular facility for regular business collections.
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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