Positive impactSector
UPI MDR should not attract any GST: Former RBI Governor C Rangarajan
BusinessLine 51 min ago·5 Oct 2026, 2:51 pm
Former RBI Governor C Rangarajan has argued that the Merchant Discount Rate (MDR) charged by banks for UPI transactions should not be subject to Goods and Services Tax (GST). He believes that treating this fee as a service charge would increase the cost of digital payments for merchants and consumers, potentially slowing down the country's push towards a cashless economy.
This view is significant for the broader market as it touches on the operational costs of the digital payments ecosystem. If the government were to agree and exempt MDR from GST, it could lower the cost of transactions and encourage even greater adoption of digital tools by businesses.
Investors should watch for any official government response to this recommendation. A shift in policy could impact the profitability of banks and payment service providers, making it a key development to monitor in the coming weeks.
Excerpt from BusinessLine
The new merchant discount rate (MDR) to be imposed on UPI merchant transactions above ₹2,000 should not attract any GST, former Reserve Bank of India Governor C Rangarajan said here on Monday. Rangarajan was speaking at the launch of ‘ Cashless Nation: How UPI Changed Everything’ a book by B Sambamurthy and Santanu…Read the original at BusinessLine
Key takeaways
- Category: Sector.
- AI reads the tone as positive (potentially bullish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
