GENERAL15 Sept 2026
UPI MDR announced: 0.4% charge on merchant payments above Rs 2,000 from October 15
From October 15, merchants pay a 0.4% fee, called MDR (merchant discount rate), on UPI payments above Rs 2,000. Payments up to Rs 2,000 stay free, and so do RuPay debit card payments, the government says. Small collections remain free; bigger ones cost a little more. Check your UPI receipts and plan for this small extra cost.
Key Statutory Highlights
- The finalised MDR framework and threshold structure are scheduled to take effect on October 15.
- There will be no charge on UPI transactions up to Rs 2,000.
- RuPay debit card payments will also carry no charge, according to the government.
Actionable Advice for Taxpayers / Founders:If you accept UPI payments, review your receipts above Rs 2,000 before October 15 and decide whether to absorb the 0.4% cost or adjust your pricing. Please confirm the exact treatment with your bank or payment provider, as the details may vary by case.
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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