GENERAL29 Sept 2026
UPI MDR fee: Small merchants and gig workers brace for 0.4% levy from Oct 15 - CNBC TV18
From October 15, person-to-merchant UPI payments above ₹2,000 will attract a merchant discount rate (MDR) of 0.4%. In simple words, you pay a small fee on each such sale. Small merchants with thin margins, whose payments mostly fall between ₹2,000 and ₹75,000, are the most worried. Do check your monthly UPI collections and plan for this extra cost.
Key Statutory Highlights
- From October 15, person-to-merchant UPI transactions above ₹2,000 will attract a merchant discount rate of 0.4%.
- Small merchants are worried about the impact of this MDR, especially those operating with thin margins.
- Merchants whose transaction mix is concentrated in the ₹2,000 to ₹75,000 range are likely to be hit hardest.
Actionable Advice for Taxpayers / Founders:Go through your recent UPI collections to see how much of your money comes in above ₹2,000, then work out with your accountant whether your pricing or margins need a small review.
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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