GENERAL18 Sept 2026
Small retailers may pass on 0.4% UPI MDR, shift to bank transfers
Industry bodies say small retailers may look for ways around the 0.4 per cent UPI MDR. UPI is the Unified Payments Interface, and MDR is the fee a shop pays on each digital payment. Some sellers could shift to bank transfers, split transactions, or pass the cost to customers. If you run a small shop, check your margins before changing how you accept payments.
Key Statutory Highlights
- Industry bodies say small retailers could seek to avoid the 0.4 per cent UPI MDR.
- Retailers may shift to bank transfers or split their transactions to reduce the cost.
- Another option retailers may use is passing the cost on to customers.
Actionable Advice for Taxpayers / Founders:Check how much you pay on UPI collections and study whether bank transfers suit your business. Talk to your CA before changing how you accept payments, since the right choice depends on your own transaction pattern.
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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