The National Payments Corporation of India (NPCI) has deferred the implementation of a 0.4 per cent Merchant Discount Rate (MDR) on Person-to-Merchant UPI transactions above Rs 2,000. Originally set for October 15, the new date will be announced after Diwali, providing relief to users and merchants, especially during the festive season. The decision came amidst opposition concerns about the levy burdening consumers.
Sonbhadra police have arrested three individuals in connection with suspicious transactions worth Rs 2.37 crore linked to the Satya Sanatan Trust's bank account. The arrests followed 35 complaints received on the national cybercrime reporting portal, with an ongoing investigation into the roles of those involved.
The National Payments Corporation of India (NPCI) has deferred the implementation of a 0.4 per cent Merchant Discount Rate (MDR) on Person-to-Merchant (P2M) UPI payments above Rs 2,000, originally set for October 15, until after Diwali.
BSP chief Mayawati has criticised the Centre's decision to introduce a 0.4 per cent fee on UPI merchant transactions exceeding Rs 2,000, effective October 15. She termed it a "capitalist profiteering attitude" that burdens the common people, while the government clarified that the charge is on merchants and not customers for person-to-person transactions.
Industry body Assocham has welcomed the new UPI framework for large-value merchant transactions, effective October 15. This framework introduces a 0.4 per cent Merchant Discount Rate (MDR) on person-to-merchant UPI payments exceeding Rs 2,000, with a cap of Rs 300 for transactions over Rs 75,000. The move aims to enhance UPI sustainability, support innovation, and mitigate fraud, while protecting small merchants and ensuring most everyday transactions remain free.
The Indian government has introduced a 0.4% transaction fee on Unified Payments Interface (UPI) payments exceeding Rs 2,000 for merchants, effective October 15, marking the end of nearly six years of free service. Person-to-person transfers and small-value transactions below Rs 2,000 remain free. The new Merchant Discount Rate (MDR) is capped at Rs 300 for transactions above Rs 75,000, with differentiated rates for essential sectors and investments, and safeguards to prevent costs from being passed to consumers.
NPCI chief Dilip Asbe stated that only about 10% of UPI transaction value might see charges passed to consumers, primarily from large corporates already absorbing credit card fees. He highlighted that 80% of Merchant Discount Rate (MDR) would come from businesses with over Rs 1,000 crore turnover, and a significant portion of transactions will remain charge-free. A new fund, potentially Rs 3,000 crore, will also be created from MDR collection to support small merchants and accelerate UPI acceptance.
A member of the National Traders' Welfare Board (NTWB) has urged the central government to withdraw its decision to impose a 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000, effective from October 15. He warned that the new charge, which will be borne by merchants, could negatively impact business growth and lead to higher prices, contradicting the government's 'ease of doing business' policy.
The central government has introduced a 0.4 per cent fee on UPI transactions exceeding Rs 2,000, prompting traders' associations to advocate for cash payments to avoid additional costs on digital payments. This move ends the zero-Merchant Discount Rate (MDR) regime, with traders expressing concerns about operating on tight margins and the potential for increased charges.
Former NITI Aayog vice-chairman Rajiv Kumar has urged the government to maintain zero-fee UPI transactions for several more years, arguing that the benefits of UPI as a public good outweigh the costs. This comes amidst the government's recent decision to introduce a 0.4% fee on person-to-merchant UPI transactions above Rs 2,000 from October 15, a move that has drawn criticism.
Former Rajasthan chief minister Ashok Gehlot has criticised the Centre for introducing a 0.4% charge on UPI transactions above Rs 2,000, alleging the decision was influenced by pressure from the United States and its payment companies like Visa and Mastercard. He highlighted a perceived shift in the government's stance on Merchant Discount Rate (MDR) for UPI, claiming it would ultimately burden consumers and small businesses while benefiting American firms.
The Finance Ministry has clarified that the 0.4 per cent Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000, effective October 15, is not expected to increase cash transactions or cause inflation. The ministry also dismissed allegations of US pressure influencing the decision, asserting that the policy aims to promote RuPay credit cards within the UPI ecosystem, and a monitoring mechanism will ensure the MDR burden is not passed on to consumers.
The Indian government has mandated that banks and payment providers cannot levy charges on UPI transactions up to Rs 2,000 or on payments made via RuPay debit cards. This directive follows an amendment to the Payment and Settlement Systems Act, 2007, aiming to sustain and expand the digital payments ecosystem.
The Reserve Bank of India (RBI) has endorsed the introduction of a Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000, effective October 15. This move, which levies a 0.4 per cent fee on merchant payments above the threshold, aims to bolster the long-term sustainability and growth of India's digital payments ecosystem. The RBI clarified that person-to-person (P2P) transactions and small person-to-merchant (P2M) payments below Rs 2,000 will remain free for users, ensuring no direct charge on customers.
The RSS-affiliated Swadeshi Jagran Manch (SJM) has urged the government to reconsider imposing a merchant discount rate (MDR) on UPI transactions above Rs 2,000, arguing that the costs do not warrant such a move. This comes after the government announced a 0.4 per cent fee on merchant transfers over Rs 2,000 from October 15, while assuring that person-to-person and small payments remain free. SJM co-convener Ashwani Mahajan highlighted that banks have not demanded MDR and that UPI has reduced their transaction costs.
Tax experts clarify that merchants will pay 18% GST on Merchant Discount Rate (MDR) for UPI payments exceeding Rs 2,000, effective October 15. However, registered merchants can claim Input Tax Credit (ITC), mitigating the tax burden. This move is expected to generate significant GST revenue for the exchequer while funding payment infrastructure.
A Public Interest Litigation has been filed in the Supreme Court challenging the Centre's decision to impose a 0.4 per cent Merchant Discount Rate (MDR) on UPI person-to-merchant transactions exceeding Rs 2,000. The plea argues that the levy was introduced without adequate statutory safeguards, transparency, or public consultation, and questions its constitutional validity and potential adverse effects on merchants and consumers.
Merchants will be subject to an 18 per cent Goods and Services Tax (GST) on the Merchant Discount Rate (MDR) for UPI payments exceeding Rs 2,000, but can mitigate this burden by claiming input tax credit (ITC), according to tax experts.
A deposit is not necessarily taxable simply because it appears in a bank account. What matters is whether its source can be satisfactorily explained.
Unified Payments Interface (UPI) transactions in India reached Rs 29.8 lakh crore in August, approaching record levels. Volume also hit a new high of 24.51 billion transactions, driven by festive activities like Raksha Bandhan. The digital payment system continues its rapid growth, expanding its global presence to 11 countries, with further growth anticipated during the upcoming festive season and new use cases like credit on UPI.
Delhi Police have arrested four men for their alleged involvement in a cyber fraud case where a victim lost Rs 44,000. The accused facilitated the use of a bank account linked to the fraud through a chain of account sharing, and five mobile phones have been recovered as evidence.
Delhi Police have arrested seven men for their alleged involvement in a Rs 3.93 crore cyber fraud that targeted a Delhi-based businessman. The investigation uncovered a sophisticated network involving mule accounts, cash withdrawals, a foreign money-exchange application, and a hawala channel used to convert illicit funds into cryptocurrency. Police recovered numerous banking instruments and mobile phones during fieldwork in Rajasthan, with further investigation ongoing.
J&K Bank MD and CEO Amitava Chatterjee defended the surcharge on UPI transactions above Rs 2,000, stating it is necessary for the system's long-term sustainability. He also discussed the shift of household savings to mutual funds, the bank's profit growth, and India's consumption-based economy.
Police in Sonbhadra have arrested three more individuals from Bhopal, bringing the total to eight, in connection with a cyber fraud case involving bank accounts linked to the Satya Sanatan Trust. The investigation has uncovered 35 complaints of cyber fraud amounting to approximately Rs 11.63 crore, with funds allegedly routed through the trust's accounts and a commission paid to its president.
Archana Veeramani, daughter of jailed granite baron R Veeramani, was deboarded from a Singapore-bound flight at Chennai airport on Friday. This action follows an alert from the SIT investigating POCSO cases against her father, who faces multiple charges and is also linked to a 2004 suicide. Authorities suspect Archana holds crucial information regarding financial transactions aimed at covering up the abuse allegations.
Account holders of a Punjab National Bank branch in Greater Noida have alleged that approximately 35 crore has gone missing from their savings and fixed deposit accounts. Customers claim unauthorised transfers occurred without their knowledge or alerts, leading to police action and suspension of bank employees.
The Delhi State Industrial Infrastructure Development Corporation (DSIIDC) launched an online liquor booking app, approved by the previous government in 2024, to bring transparency and curb brand pushing in retail sales. The app, which became available to iOS users via a micro-site on September 6, allows customers to digitally book and pay for liquor, which must then be picked up from designated stores. It has seen significant transaction growth since its launch in November 2025, aiming to reduce crowds and ensure age verification.
Delhi Police have arrested three men Shoaib, Mohd Ovesh, and Mohd Adil for allegedly facilitating a cyber fraud. The arrests followed a complaint from a victim who lost Rs 88,784 after being lured into a fake investment scheme. The accused provided bank accounts for receiving fraudulent payments, and investigations are ongoing to trace the full amount and identify other beneficiaries.
Delhi Police have arrested Sadiq Sheikh for allegedly cheating a taxi driver, Akhilesh Kumar, of Rs 2 lakh in a fake Saudi riyal exchange scam. The accused gained the driver's confidence through a smaller transaction before swapping his cash bag with one containing newspapers during a larger deal. Efforts are underway to apprehend his associates.
The Tamil Nadu State Marketing Corporation (TASMAC) has mandated digital payments for retail liquor sales exceeding Rs 1,000, effective November 1. This move aims to enhance transparency, improve operational efficiency, and combat issues like overcharging, safety risks, and counterfeit currency. The new rule will be implemented in phases, with strict measures against violations.
Delhi Police have busted a cyber fraud network in Greater Noida, arresting seven individuals involved in supplying bank accounts opened through fake firms to cybercriminals. The network facilitated over Rs 30 crore in credit transactions and is linked to 27 cyber fraud complaints across various states. The investigation began after a Delhi University student was defrauded of Rs 6,450.
Delhi Police have arrested a 43-year-old man from Kerala in connection with a cyber fraud case involving unauthorised transactions totalling Rs 1.96 lakh from a woman's bank account. The accused, Raju, was identified through bank records and the National Cyber Crime Reporting Portal, and his account was linked to multiple cybercrime complaints.
The Kerala Legislative Assembly has passed a motion urging the central government to completely withdraw the proposed Merchant Discount Rate (MDR) on UPI transactions exceeding Rs 2,000. Chief Minister V D Satheesan and CPI MLA K Rajan highlighted concerns that the MDR would increase business costs, harm small businesses, and reduce the appeal of digital payments, while the BJP argued it would not affect general public or small merchants.
Delhi Police have arrested two men, including a BTech graduate, from Jharkhand for their alleged involvement in a cyber-fraud racket. The duo cheated over 50 people, primarily those aged above 50, by impersonating bank officials and misusing credit card details through video calls and screen sharing. They were apprehended in Dhanbad following an investigation into a complaint filed on September 23.
The Congress party has questioned the Modi government's decision to defer the Merchant Discount Rate (MDR) on UPI transactions, alleging a potential "U-turn on the U-turn." Congress general secretary Jairam Ramesh highlighted previous denials by the finance minister regarding MDR imposition, only for it to be announced later and now deferred. He expressed concerns about future charges on UPI transactions.
Faridabad police have arrested two men and a woman from Ghaziabad for allegedly defrauding a man of Rs 89,750. The victim was lured with a fake 'playboy job' offer via Facebook and WhatsApp, leading to multiple transactions. The accused were arrested on Tuesday and remanded to judicial custody.
One 97 Communications Ltd, operating Paytm, reported a significant 10-fold increase in profit after tax to Rs 225 crore in Q2 FY27, marking its sixth consecutive profitable quarter. The company also saw a 28% rise in operating revenue to Rs 2,648 crore, driven by strong performance in merchant and consumer businesses, expanded monetisation, and AI adoption. Paytm's EBITDA margin reached double digits for the first time, reflecting enhanced operating profitability.
Office-bearers of the Punjab State Lawn Tennis Association (PSLTA) are seeking the removal of honorary secretary Dinesh Arora due to financial and administrative concerns. An Extraordinary General Meeting (EGM) is scheduled for October 31 to address these issues, which include questions over fund transactions, third-party routing of receipts, and incomplete financial records. A police complaint has also been filed, and an independent forensic audit is being considered.
A report by IIT-Bombay professors recommends reducing the Merchant Discount Rate (MDR) on UPI transactions from 0.40 per cent to 0.08 per cent. It suggests that banks should fund the UPI ecosystem using their net interest margins from CASA deposits, rather than relying on MDR. The report also addresses transaction costs, credit card MDR, and ATM withdrawal allowances, aiming to ensure UPI's long-term sustainability and public trust by proposing remuneration only from large merchants.
A Delhi resident was allegedly defrauded of Rs 1.35 lakh by two individuals who promised him a driver's job with a monthly salary of Rs 32,000. The victim made multiple online transactions but never received the job, and the money was not returned. The accused are now reportedly demanding an additional Rs 20,000.
