GENERAL27 Sept 2026
SC to hear plea against MDR on UPI merchant payments above ₹2,000 on Monday
The government has introduced a 0.4 per cent Merchant Discount Rate (MDR), a fee, on UPI payments above ₹2,000 made to merchants from October 15. Person-to-person transfers and small payments stay free, while essential sectors pay a flat ₹5 per transaction. The Supreme Court hears a challenge on Monday, so watch for changes and review your payment costs.
Key Statutory Highlights
- From October 15, a 0.4 per cent MDR applies on UPI payments above ₹2,000 made to merchants, capped at ₹300 for payments of ₹75,000 and above.
- Person-to-person UPI transfers stay free of any charge, and railways, telecom, insurance, fuel and agricultural inputs pay a flat ₹5 per transaction above ₹2,000.
- The Supreme Court will hear a public interest plea on Monday challenging the Centre's September 14 notification and the MDR framework.
Actionable Advice for Taxpayers / Founders:If you accept UPI payments above ₹2,000 from customers, follow the Supreme Court hearing and the final notified rules before changing your prices or charges. The outcome is not yet decided, so keep your transaction records handy and speak to your CA if this levy applies to you.
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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