GENERAL25 Sept 2026
UPI MDR is not a tax, won't mean extra cost for customers: FM Sitharaman
Finance Minister Nirmala Sitharaman has clarified that the merchant discount rate, or MDR, on specified Unified Payments Interface (UPI) payments above ₹2,000 is not a tax on customers. The charge will be borne within the payments ecosystem, so it affects merchants and payment companies, not you. Your UPI payments stay free. Keep paying by UPI as usual and don't pass on any extra charge to customers.
Key Statutory Highlights
- Finance Minister Nirmala Sitharaman said the charge on specified merchant transactions above ₹2,000 is not a tax on customers.
- She said this charge will be borne within the payments ecosystem instead of being passed on to customers.
- UPI payments made by customers will remain free.
Actionable Advice for Taxpayers / Founders:Business owners can keep accepting UPI payments as usual and should not add any extra charge to customers; if you plan to change your billing or pricing, check the latest official guidance or ask your CA first.
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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