Signal Desk · Companies

Small merchants brace for 0.4% UPI MDR levy

2026-09-29 · 1 source · CNBC TV18 Business

In short

Small merchants and gig workers are bracing for a 0.4% UPI MDR levy from Oct. 15. The reporting says the worry is greatest for businesses with thin margins and transactions mostly in the ₹2,000-75,000 range.

This could raise costs for sellers who rely on UPI payments. It is not stated in the available reporting exactly how the levy will be applied or whether any relief will be offered.

What the reporting says

Small merchants and gig workers are bracing for a 0.4% UPI MDR levy from Oct. 15, with worries focused on thin-margin businesses. The available reporting says merchants with transaction mixes concentrated in the ₹2,000-75,000 range are especially concerned. It is not stated in the available reporting who will pay the levy in practice, how widely it will apply, or whether any changes will follow.

Why it matters

Small merchants and gig workers are preparing for a 0.4% UPI merchant discount rate levy from Oct. 15, according to the reported summary. The concern is centered on businesses with thin margins and a transaction mix in the ₹2,000-75,000 range. The reporting does not say who will ultimately bear the cost, whether the charge is finalized, or how payment providers and merchants will respond.

Touches: Economy, Markets

Sources