Brief by Shorts91 Newsdesk / 07:06pm on 15 Sep 2026,Tuesday India
The government will levy a 0.4% Merchant Discount Rate (MDR) on UPI payments to merchants above Rs 2,000, effective October 15. The finance ministry clarified the charge applies only to person-to-merchant transactions and will be capped at Rs 300 for payments of Rs 75,000 and above. Consumers will not be charged. Essential sectors like railways, telecom, insurance, fuel, and education fees will pay a flat Rs 5 per transaction instead. Payments below Rs 2,000, rural and semi-urban QR transactions remain fully exempt. Officials say only about 4% of merchant transactions will actually attract the new fee. (PC: X)
