INCOME TAX16 Sept 2026
UPI MDR FAQs: What happens to QR payments, AutoPay, SIPs and utility bills? Key things every UPI user must know
From 15 October 2026, NPCI's new Merchant Discount Rate (MDR) rules will charge merchants 0.4% on select person-to-merchant UPI payments above ₹2,000, capped at ₹300. This affects businesses accepting QR payments, not customers. You'll still pay nothing to scan and pay, with no platform fee and no monthly free-transaction limit. Person-to-person transfers also stay free. Merchants cannot pass this charge on to buyers.
Key Statutory Highlights
- From 15 October 2026, NPCI's new UPI MDR framework charges merchants 0.4% on select person-to-merchant transactions above ₹2,000.
- The merchant-side MDR is capped at ₹300 for transactions of ₹75,000 and above.
- Consumers pay no platform fee, face no monthly limit on free UPI payments, and person-to-person transfers stay free.
Actionable Advice for Taxpayers / Founders:If you run a business that accepts UPI, review your pricing and bookkeeping for these merchant-side charges after 15 October 2026, and ask your payment provider how they will apply them, since the impact can differ by transaction.
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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