Government clarifies credit card-linked UPI payments exempt from 0.4% fee
Mint 47 min ago·15 Sept 2026, 6:26 pm
The government has clarified that credit card-linked UPI payments will not be subject to the new 0.4% merchant discount rate (MDR) fee. This exemption applies to transactions where a credit card is used to fund a UPI payment, effectively shielding this popular payment method from the upcoming charges.
This clarification is significant for investors as it protects the convenience and cost-effectiveness of UPI, which is a cornerstone of India's digital payments ecosystem. By ensuring credit card-linked UPIs remain fee-free, the government aims to maintain high transaction volumes and consumer adoption ahead of the revised fee structure.
Investors should watch for the actual implementation of the new rules on October 15. The impact on transaction volumes and the overall digital payments sector will depend on how merchants and consumers adapt to the new fee framework.
Excerpt from Mint
The clarification comes ahead of the revised UPI fee structure, which is scheduled to take effect from October 15. Under the new framework, a 0.4% MDR will be applicable to certain direct account-to-merchant-account UPI payments above ₹ 2,000, with the fee capped at ₹ 300 per transaction Credit card-linked UPI…Read the original at Mint
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