STARTUP LEGAL16 Sept 2026
PhonePe may restart IPO process after new MDR rules bring clarity
NPCI now allows a 0.4% merchant discount rate (MDR) on UPI merchant payments above ₹2,000, starting 15 October. The fee is capped at ₹300 per transaction, and about 95% of payments stay free. This gives PhonePe long-awaited revenue visibility, so it may restart its paused initial public offering (IPO) process. If you accept UPI, check your settlement charges after the change.
Key Statutory Highlights
- NPCI will allow a 0.4% merchant discount rate on UPI person-to-merchant transactions above ₹2,000 from 15 October, capped at ₹300 per transaction.
- About 95% of UPI transactions, including payments under ₹2,000 and small merchant transfers, will remain completely free.
- PhonePe had paused its listing plans on 16 March and now plans to submit updated financial metrics with Sebi before moving forward.
Actionable Advice for Taxpayers / Founders:If you accept UPI payments, review your pricing and settlement charges, and confirm with your payment provider how the new fee applies to your business.
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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