Archive · 17 Sep 2026
UPI App’s ₹1,999 Payment Splitting Idea Sparks Fraud Concerns
A new online tool says it can split one UPI payment into several smaller payments.
Each smaller payment would be made using a different QR code.
For example, ₹4,500 could be divided into three payments.
The tool says users can collect the full amount without paying fees.
However, nobody has independently confirmed that the tool is genuine or works as claimed.
Some people worry that making many quick payments could look suspicious to a bank.
Others say the tool may not be necessary because personal UPI transfers are still free.
New rules from October 15, 2026, would charge some merchants for payments above ₹2,000.
Customers would not directly pay the MDR, which would be charged to eligible merchants.
An unnamed tool claims to divide UPI payments into separate instalments of up to ₹1,999.
The tool requests a UPI ID, account holder’s name, and payment amount, then generates separate QR codes.
A ₹4,500 example is split across three QR codes, with the page promising zero fees.
Commenters questioned the tool’s usefulness for large payments and warned that repeated transactions could trigger fraud scrutiny.
From October 15, 2026, specified merchant UPI payments above ₹2,000 will attract 0.4% MDR, capped at ₹300, while personal transfers remain free.
- Who
- The unnamed payment-splitting tool, social-media commenters, CA Akhil Agarwal, merchants, banks, and UPI users.
- What
- A tool claims to split UPI payments into instalments of up to ₹1,999 using separate QR codes, prompting debate about fees and fraud monitoring.
- When
- The discussion was reported in connection with new MDR rules taking effect on October 15, 2026.
- Where
- The discussion took place online, including on LinkedIn, and concerns relate to UPI transactions in India.
- Why
- The idea was discussed as a possible way to avoid charges on larger merchant payments, although its authenticity and effectiveness were not verified.
Supporters and proponents
Critics and cautious observers
Possible fee avoidance
Supporters and proponents
The payment-splitting concept could divide a larger payment into amounts below the stated ₹2,000 merchant-charge threshold.
Critics and cautious observers
Commenters questioned whether splitting payments is necessary, since personal UPI transfers remain free and the tool’s ability to avoid applicable charges is unverified.
Convenience for large payments
Supporters and proponents
Separate QR codes could theoretically allow a recipient to collect one larger amount through smaller instalments.
Critics and cautious observers
Critics asked whether large payments would require many UPI PIN entries, making the process impractical; one commenter estimated that a ₹2 lakh payment could require around 100 entries.
Fraud monitoring risk
Supporters and proponents
The tool’s page claims payment details never leave the browser, which may reassure some users about handling data.
Critics and cautious observers
Commenters warned that sudden bursts of repeated payments could attract bank scrutiny or be flagged as suspicious activity; these were online concerns, not confirmed findings about the tool.
- Maximum instalment claimed
- ₹1,999
- Example payment
- ₹4,500 divided across three QR codes
- Tool’s fee claim
- The page promises to collect the full amount while paying ₹0 in fees.
- Merchant charge threshold
- Specified merchant payments above ₹2,000
- Merchant MDR rate
- 0.4%, capped at ₹300
- Effective date
- October 15, 2026
- Personal UPI transfers
- Remain free regardless of the amount, according to the Finance Ministry position described.