GENERAL15 Sept 2026
UPI Charges: Will payments above Rs 2,000 attract fees? Know what MDR is, government’s stand and key details
A gazette notification dated September 14 says banks and system providers cannot charge you, directly or indirectly, for UPI or RuPay debit card payments up to Rs 2,000. This protects people who pay or receive money, not merchants. Finance Minister Nirmala Sitharaman said in August that the Merchant Discount Rate (MDR) applies to merchants, not customers. So your small payments stay free.
Key Statutory Highlights
- A gazette notification dated September 14 says no bank or system provider may impose any charge, directly or indirectly, on a person making or receiving a payment through a RuPay debit card or UPI transaction of up to Rs 2,000.
- Finance Minister Nirmala Sitharaman said in August that the Merchant Discount Rate on digital transactions applies to merchants and not to customers.
- The MDR charge would support banks and fintech companies to invest more in infrastructure and security.
Actionable Advice for Taxpayers / Founders:Keep making your usual small UPI and RuPay debit card payments, and if you ever see a charge added on a payment of up to Rs 2,000, ask your bank or payment app for a written explanation before paying it.
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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