5 days ago
Punjab & Sind Bank Chief Says UPI Merchants Cannot Pass MDR
Some businesses pay a fee when customers pay them using UPI.
Starting October 15, certain UPI payments to merchants will have this fee.
It applies to merchant payments above ₹2,000.
The fee is 0.4% and cannot be more than ₹300.
Punjab & Sind Bank chief Swarup Kumar Saha said businesses must not add this fee to a customer’s bill.
Customers should pay the price displayed by the merchant.
Payments from one person to another will not have this charge, whatever the amount.
Punjab & Sind Bank MD and CEO Swarup Kumar Saha said merchants cannot pass UPI MDR charges on to customers.
Customers should pay only the price posted by the merchant, Saha said.
From October 15, merchant UPI payments above ₹2,000 will attract a 0.4% MDR.
The MDR will be capped at ₹300.
Person-to-person UPI transactions will not incur a charge, regardless of amount.
- Who
- Punjab & Sind Bank MD and CEO Swarup Kumar Saha, and merchants accepting UPI payments.
- What
- Saha said merchants cannot pass the Merchant Discount Rate on to customers.
- Where
- The article does not specify a location.
- When
- The MDR framework takes effect October 15; Saha's comments were published October 6, 2026.
- Why
- The framework ensures customers pay only the price displayed by the merchant.
Key facts
- MDR effective date
- October 15
- Transactions subject to MDR
- Merchant UPI payments above ₹2,000
- MDR rate
- 0.4%
- MDR cap
- ₹300
- Person-to-person transactions
- No charge, regardless of amount
- Customer payment rule
- Customers pay only the posted price; merchants cannot pass on MDR charges
- Statement published
- October 6, 2026
Quotes
Swarup Kumar Saha
Punjab & Sind Bank MD and CEO
“Merchants onboarded cannot pass on MDR charges to customers while accepting payments through UPI. The framework ensures consumers pay only the posted price.”
thehindubusinessline.com
Sources
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