INCOME TAX25 Sept 2026
UPI is accepted in 11 countries: Will MDR charges apply globally? What we know so far | Mint
From October 15, 2026, UPI merchant payments above ₹2,000 will carry a Merchant Discount Rate, or MDR, of 0.4%. Reports say this will apply in the 11 countries where UPI works, but official confirmation is awaited. The fee is capped at ₹300 for payments of ₹75,000 and above. Person-to-person transfers stay free, and merchants cannot pass MDR on to you.
Key Statutory Highlights
- A MDR of 0.4% will apply to specified UPI merchant transactions above ₹2,000, and it is capped at ₹300 per transaction for payments of ₹75,000 and above.
- Transactions above ₹2,000 in essential and thin-margin sectors such as railways, telecommunications, insurance, fuel and agricultural inputs will attract a flat MDR of ₹5 per transaction.
- All person-to-person UPI transactions remain completely free, and banks have been strictly advised to make sure merchants do not pass MDR charges on to customers.
Actionable Advice for Taxpayers / Founders:If you accept UPI payments as a business, review your transaction records and pricing before October 15, 2026, and check with your CA on how the new MDR rates could affect your costs.
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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