INCOME TAX24 Sept 2026
UPI MDR on loan repayments: What charge applies to EMIs and who bears it? Here's what borrowers need to know | Mint
From 15 October 2026, UPI payments above ₹2,000 for debt collection, including loan repayments and EMI collections, will attract a flat ₹5 MDR. That charge falls on the merchant side, so lenders or collection agencies pay it, not you. EMI collections through UPI AutoPay stay exempt, and credit-linked payments follow their own credit product rules. So check your repayment mode before 15 October.
Key Statutory Highlights
- UPI transactions of ₹2,000 and above for debt collection, including loan repayments and EMI collections, will attract a flat ₹5 MDR from 15 October 2026.
- The ₹5 MDR is charged on the merchant side, so the lender or collection agency pays it and it is not an extra cost for the borrower.
- EMI collections above ₹2,000 made through UPI AutoPay will not attract the ₹5 MDR, as NPCI allows and encourages such collections.
Actionable Advice for Taxpayers / Founders:If you repay loans or EMIs through UPI, confirm with your lender or collection agency how the ₹5 MDR is applied to your payments, and keep your transaction records so you can question any extra charge that shows up on your side.
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
Share: