INCOME TAX16 Sept 2026
UPI MDR FAQs: What happens to QR payments, AutoPay, SIPs and utility bills? Key things every UPI user must know | Mint
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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