Negative impactEconomy
Passing UPI MDR to customers is a criminal offence: Here's what the law says — experts weigh in
Mint 1 hr ago·17 Sept 2026, 6:25 pm
The government has introduced a small fee, known as MDR, for certain UPI transactions made from October 15. This charge is officially meant to be paid by the merchant, not the customer. Experts warn that if a merchant tries to pass this cost directly to the consumer, it would be considered a criminal offence under the law.
This move is significant for the retail payment ecosystem as it clarifies the liability for the new charges. It aims to prevent merchants from inflating prices or adding hidden fees to cover the cost. Investors should monitor how this policy is implemented and whether it leads to any changes in consumer spending habits or merchant pricing strategies.
Going forward, it will be important to watch for any regulatory enforcement actions and the overall impact on digital transaction volumes. The success of this policy depends on its clear communication to both merchants and customers to ensure compliance.
Excerpt from Mint
UPI MDR will apply to specified P2M transactions above ₹ 2,000 from 15 October. While the charge is levied on merchants, the government has warned that passing it on to consumers would constitute a criminal offence. Here’s what the law says. With UPI Merchant Discount Rate (MDR) set to apply from 15 October on…Read the original at Mint
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
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