INCOME TAX15 Sept 2026
UPI and Services Steering Committee to take decision on MDR charges soon: What are issues on the table? | Mint
The 22-member UPI and Services Steering Committee is set to decide soon on merchant discount rate (MDR), the fee businesses pay banks to process card and online payments, for UPI transactions above ₹2,000. Payments up to ₹2,000 already cannot carry any direct or indirect charge. If MDR applies above ₹2,000, merchants may receive slightly less on bigger payments. Watch for the panel's decision.
Key Statutory Highlights
- A 22-member UPI and Services Steering Committee will soon take a call on MDR for UPI transactions above ₹2,000.
- The government barred banks and system providers from imposing any direct or indirect charges on UPI and RuPay debit card payments up to ₹2,000, under amended Section 10A of the Payment and Settlement Systems Act, 2007.
- MDR has stood at 0% for UPI and RuPay debit card transactions since 2020, so merchants currently receive the full transaction amount.
Actionable Advice for Taxpayers / Founders:Keep an eye on the committee's announcement before you change your pricing or payment setup. If MDR is introduced for larger UPI payments, check how it would sit with your margins and whether you would absorb the cost or adjust your prices.
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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