From October 15, 2026, 0.4 percent merchant discount rate (MDR) will be applicable on select UPI merchant transactions above Rs 2,000. This fee will be charged from eligible merchants taking payment. The maximum limit of MDR on transactions of Rs 75,000 or more has been fixed at Rs 300 per transaction. At the same time, this fee will not be applicable on UPI merchant payments and person-to-person (P2P) transactions up to Rs 2,000. Aam Aadmi Party's Rajya Sabha MP Sanjay Singh reacted to this decision. He sarcastically said that 'Uncle' is very angry. Sanjay Singh alleged that this decision will have a big impact on people's pockets.
Traders will charge only from common people: Sanjay Singh
Taking aim at the government regarding MDR, Sanjay Singh said that it is ridiculous to say that the fee will be taken from traders, hence it has nothing to do with the common people. He said any additional charges imposed by the government would ultimately be passed on to consumers. Sanjay Singh said, “Whatever tax you levy will be collected from the consumer only. The businessman is not a relative. Whatever tax you levy will be collected from the common man only.”
Important points about MDR charge
0.4 per cent MDR will be charged from merchants on eligible merchant UPI transactions above Rs 2,000.
A maximum MDR of Rs 300 will be applicable on transactions of Rs 75,000 or more.
The new system is said to be effective from October 15, 2026.
MDR (Merchant Discount Rate) is the fee charged from a merchant for accepting digital payments.
MDR will not be applicable on UPI merchant transactions up to Rs 2,000.
P2P transactions between two individuals will not attract MDR and will remain fee-free as before.
Now the businessman will say- give us in cash: Sanjay Singh
Aam Aadmi Party's Rajya Sabha MP Sanjay Singh said that with the imposition of MDR, merchants can ask customers to pay in cash instead of taking digital payments. He said, “You were trumpeting about Digital India, now the businessman will ask you to give it in cash. The businessman will ask you to bring Rs 5,000 and Rs 10,000 from home. We will not take it from you online.” Sanjay Singh said that earlier people were inculcated into the habit of digital payment and now there is talk of imposing a fee on it. He claimed that Finance Minister Nirmala Sitharaman had said in Parliament that there will be no additional tax on grocery shopkeepers and small traders. Singh said that Rs 5,000-6,000 can be easily paid for purchasing ration and in such a situation this system will have an impact on the common people.
Sanjay Singh also mentioned the economic benefits of UPI. He claimed that UPI was making a profit of Rs 1,800 crore. He raised the question that how much more profit does the government want? He said that the government has prepared a good system for online transactions and despite making a profit of Rs 1,800 crore from it, now there is talk of charging additional fees instead of providing the facility.
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