Govt rules out MDR burden on UPI users; GST Council may review 18% tax next month
Times of India 1 hr ago·25 Sept 2026, 12:27 am
The government has clarified that the burden of Merchant Discount Rates (MDR) will not be passed on to users of the Unified Payments Interface (UPI). This move aims to make digital transactions more affordable for the common man and supports the continued growth of the digital economy.
For investors, this policy shift is significant as it removes a potential regulatory hurdle for the fintech sector. It encourages higher transaction volumes and strengthens the long-term business case for digital payment platforms. The move also signals a supportive stance from the government towards the digital economy.
Investors should watch the upcoming meeting of the GST Council next month. Any decision to review the 18% GST on digital transactions could further boost the sentiment in the fintech and banking sectors. Market participants will closely monitor the council's deliberations for any further clarity on this matter.
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
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