GENERAL18 Sept 2026
UPI MDR apprehension unlikely to spur higher cash usage: RBI DG Murmu
From October 15, a 0.4 per cent Merchant Discount Rate (MDR) applies to person-to-merchant UPI (Unified Payments Interface) payments above Rs 2,000. Merchants pay this charge, not customers, and it is capped at Rs 300 for transactions of Rs 75,000 or more. Person-to-person transfers and most everyday merchant payments stay free. RBI Deputy Governor Murmu said fears of a cash surge are unlikely to come true.
Key Statutory Highlights
- From October 15, a 0.4 per cent MDR will apply to person-to-merchant UPI payments above Rs 2,000.
- The charge will be paid by merchants, not consumers, and will be capped at Rs 300 for transactions of Rs 75,000 or more.
- Payments between individuals, as well as the vast majority of everyday merchant payments, will remain free.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, note that MDR begins October 15 on person-to-merchant payments above Rs 2,000. Check with your payment provider or CA on how it will be collected, and keep your transaction records ready. This is general information, not a confirmed outcome for your 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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