Stories
B2B Platform Pneucons Drops UPI Payments Over New MDR Charges
C
CNBC TV18•05-10-2026, 17:30
B2B Platform Pneucons Drops UPI Payments Over New MDR Charges
- •Ahmedabad-based industrial marketplace Pneucons announced it will stop accepting UPI payments starting October 10 due to new merchant discount rate charges.
- •Co-founder Pritesh Lakhani stated that the new 0.4% MDR on transactions above 2000 rupees would consume 94% of the company's margins.
- •The government announced a 0.4% MDR on certain merchant UPI transactions above 2000 rupees starting October 15, which businesses must absorb.
- •Industry experts like Siddharth Dialani suggest merchants might eventually pass these costs onto customers through price mark-ups or platform fees.
- •Karnataka Chief Minister DK Shivakumar also criticized the move, warning it places an unnecessary financial burden on traders and businesses.
Key Questions Answered
Starting October 15, certain merchant UPI transactions exceeding ₹2,000 will be subject to a 0.4% merchant discount rate (MDR). For larger transactions of ₹75,000 and above, this MDR charge is capped at ₹300.
No, standard UPI payments for consumers will remain completely free. Customers do not have to pay any additional MDR fees when transferring money to friends and family or when purchasing items from stores and street vendors.
Small merchants, neighborhood shops, and street vendors who receive up to ₹1 lakh per month through UPI QR codes into their bank accounts will continue to enjoy zero MDR.
