INCOME TAX16 Sept 2026
UPI new rules from Oct 15: What happens to insurance, SIP payments? Will Netflix, phone bills via AutoPay get costlier? | Mint
From 15 October, UPI payments to merchants above ₹2,000 will carry a 0.4% fee, capped at ₹300. Person-to-person transfers stay free, and UPI AutoPay for OTT subscriptions, mobile, electricity, insurance and mutual funds stays free. Payments up to ₹2,000 are untouched. Businesses, not you directly, pay this merchant fee, so check bills and ask your vendor who absorbs it.
Key Statutory Highlights
- From 15 October, person-to-merchant UPI payments above ₹2,000 will attract a 0.4% merchant discount rate fee, capped at ₹300.
- Person-to-person transfers and payments up to ₹2,000 will continue to attract zero charges.
- UPI AutoPay payments for OTT subscriptions, mobile bills, electricity bills, insurance and mutual funds will not carry extra charges.
Actionable Advice for Taxpayers / Founders:Review your recent UPI merchant bills and ask your bank or the vendor whether the 0.4% merchant discount rate is being passed on to you, before you plan next month's costs.
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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