GENERAL18 Sept 2026
UPI MDR return sparks support, merchant pushback over higher costs
A 0.4% merchant discount rate now applies to UPI payments above Rs 2,000. This charge could raise Rs 15,000 to Rs 20,600 crore every year. Retailers and fuel dealers say it will squeeze their margins and may push customers back to cash. If you accept UPI payments, please review your monthly charges and pricing carefully.
Key Statutory Highlights
- A 0.4 per cent charge applies to merchant UPI payments above Rs 2,000.
- This charge could generate between Rs 15,000 crore and Rs 20,600 crore annually.
- Retailers and fuel dealers fear margin pressure and a possible shift towards cash payments.
Actionable Advice for Taxpayers / Founders:If your business collects UPI payments above Rs 2,000, keep an eye on what the new charge costs you each month and review your pricing when you can.
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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