INCOME TAX15 Sept 2026
UPI is no longer free for all, as conditions apply | Mint
From 15 October 2026, UPI payments to merchants above ₹2,000 will carry a merchant discount rate (MDR) of 0.4%, capped at ₹300 per transaction, says the National Payments Council of India (NPCI). Consumers still pay nothing. Payments below ₹2,000 and small merchant transactions stay free. If you run a business accepting UPI, review whether this new cost affects your pricing.
Key Statutory Highlights
- An MDR of 0.4% will apply on person-to-merchant UPI payments above ₹2,000, capped at ₹300 per transaction.
- UPI stays free for consumers, and transactions below ₹2,000 along with small merchant transactions remain completely free.
- The revised UPI MDR framework takes effect from 15 October 2026, with a new fund proposed to support UPI acceptance among small merchants.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, keep a watch on merchant collections above ₹2,000 after 15 October 2026 and confirm with your payment provider how the 0.4% MDR, capped at ₹300, will be applied in your settlements.
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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