GENERAL15 Sept 2026
UPI MDR charges: What changes for consumers, small vendors, large and e-commerce platforms from October 15 | Common FAQs answered
From October 15, merchant UPI payments above Rs 2,000 will carry a 0.4% merchant discount rate (MDR). UPI transactions up to Rs 2,000 and RuPay debit card payments stay free of charge. This mainly affects businesses taking larger UPI payments. The collected MDR stays within the UPI ecosystem and funds infrastructure, innovation, cybersecurity and customer service. Review your payment mix now.
Key Statutory Highlights
- A 0.4% merchant discount rate will apply on UPI merchant payments above Rs 2,000 from October 15.
- UPI transactions up to Rs 2,000 and RuPay debit card payments will carry no charge.
- The MDR is shared only within the UPI ecosystem to fund infrastructure, innovation, cybersecurity and customer service.
Actionable Advice for Taxpayers / Founders:If you run a business, look at how many UPI payments you receive above Rs 2,000 and see whether your pricing or payment setup needs a change. Check with your CA on how this applies to your own transactions.
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
Share: