GENERAL25 Sept 2026
UPI MDR decision purely professional, no external pressure: FM Sitharaman
From October 15, a 0.4 per cent Merchant Discount Rate (MDR) applies to person-to-merchant UPI payments above Rs 2,000. Finance Minister Nirmala Sitharaman denies outside pressure, saying the National Payments Corporation of India (NPCI) and banks decided it professionally. Merchants pay this fee, not customers, and it is capped at Rs 300. Small merchants collecting up to Rs 1 lakh monthly stay exempt.
Key Statutory Highlights
- From October 15, a 0.4 per cent Merchant Discount Rate applies to person-to-merchant UPI payments above Rs 2,000, and the merchant pays it, not the consumer.
- The charge is capped at Rs 300, and small merchants collecting up to Rs 1 lakh a month through UPI QR codes remain fully exempt from any new charge.
- Finance Minister Nirmala Sitharaman rejected Opposition claims of external pressure, saying MDR is not a tax and the collection does not go to the government.
Actionable Advice for Taxpayers / Founders:If your business accepts UPI, review your monthly collection volumes and keep clean records of these charges, then check with your accountant whether any adjustment is needed in your books.
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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