Deccan Herald · 16 Sept, 16:21

Economy, business and finance

'UPI MDR will lead to transaction splitting, may defeat purpose of India's digital-payment revolution'

Retailers warn 0.4% UPI MDR from October 2026 could lead to transaction splitting, under-reporting and tax avoidance, undermining India’s cashless push. Experts flag risks of personal account payments and higher costs for consumers.

'This could also create opportunities for under-reporting of business transactions and tax avoidance, which is precisely the opposite of what India’s digital-payment revolution was intended to achieve', FRTWA President Viren Shah said.