UPI MDR Starts October 15: 5 Money Updates To Know This Month

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Eligible merchants face payment-processing costs, and covered NPS accounts attract revised fees. The filing extension gives businesses more preparation time. Banks also take on a continuing obligation to publish bulk deposit rates each business day. The effects differ by account, transaction and taxpayer category. 

How Will October’s Changes Affect Customers And Businesses?

UPI customers retain free payments. The Finance Ministry prohibits merchants from passing MDR to buyers, while person-to-person transfers remain free. Eligible small merchants under the P2PM category also retain zero MDR. A customer making a payment and a business accepting it therefore have different obligations. 

For audited businesses, the CBDT extension provides time to finish accounts and supporting records. That relief applies to the specified category for assessment year 2026–27. The announcement does not extend every taxpayer’s filing deadline, and businesses still have separate dates for the audit report and return. 

What Do Tax Experts Say About The Extension?

Sumeet Hemkar, Partner at Deloitte, said businesses needed additional time to reconcile income-tax information with GST records and accounting data. In comments reported on 28 September 2026, he said overlapping deadlines, festival holidays and banking disruptions had increased pressure on taxpayers and professionals. 

Amit Agarwal, Senior Partner at Nangia & Co LLP, said the extension would help businesses complete audits and support the information reported in their returns. Both comments emphasise the remaining work: checking records, resolving differences and completing accurate filings within the revised period. 

Which 5 Financial Updates Need Attention?

October’s announcements cover different obligations. The related income-tax return deadline now falls in November, although the audit-report deadline remains in October.

The CBDT dates need separate entries in a business’s compliance calendar. Treating November as the deadline for both submissions would overlook the earlier audit-report requirement. 

Which UPI Payments Attract Merchant Charges?

Eligible person-to-merchant payments above ₹2,000 attract 0.4% MDR, capped at ₹300 for transactions of ₹75,000 or more.

Eligible P2PM merchants receiving up to ₹1 lakh monthly through UPI QR remain exempt. Designated categories, including fuel and insurance, carry a ₹5 flat charge above ₹2,000. Capital-market transactions have a separate 0.02% rate, capped at ₹300. Merchant classification determines the applicable treatment. 

How Do The Revised NPS Charges Work?

PFRDA’s circular PFRDA/2026/46/REG-POP/08, dated 28 August 2026, prescribes ₹200 per PRAN for PoP onboarding and an annual charge of 0.20% of assets under management. Applicable taxes are additional. Qualifying fully digital onboarding may attract a reduced ₹100 fee.

Dormant accounts are exempt from the annual charge. Subscribers onboarded through e-NPS who continue contributing through e-NPS or D-Remit avoid PoP charges. Subscribers originally onboarded through a PoP remain liable even after moving subsequent contributions to those channels. 

What Do Daily Deposit Disclosures Change?

Banks must publish bulk deposit rates at 10 am, with grace until 10.10 am, each business day. The 30 July 2026 directions require interest payable to follow the schedule disclosed in advance.

Comparable deposits require consistent treatment across branches, subject to permitted differences under liquidity rules. The directions change rate disclosure and treatment; they do not instruct banks to raise deposit returns. 

The editorial takeaway for LoansJagat is that households should separate payment costs, savings income and filing obligations when reviewing October’s changes. A deposit disclosure requirement does not itself change a loan contract. Likewise, an audit extension gives a business more filing time without determining the repayment dates agreed with its lender. These are separate financial commitments, even when they appear in the same monthly calendar.

What Were The Previous Deadlines And Rules?

Covered audit reports were previously due on 30 September 2026, and related returns on 31 October 2026. The CBDT’s September announcement moved both dates, while retaining separate deadlines for the submissions. 

PFRDA’s revised PoP structure replaces circular PFRDA/2026/16/REG-POP/01, dated 10 March 2026. The replacement applies from October, so NPS subscribers need to check the revised terms against their onboarding route. 

Conclusion

October brings different tasks for each group. Merchants need to identify their payment category, pension subscribers need to check fee eligibility, and covered businesses have an audit deadline followed by a return deadline. Customers retain free UPI payments.

Frequently Asked Questions

1. Will UPI Payments Above ₹2,000 Affect Customers Or Only Merchants?

The specified MDR applies to eligible merchants. The Finance Ministry says consumers remain exempt and merchants cannot pass the charge to buyers.

2. Is UPI No Longer Free?

UPI remains free for consumers and person-to-person transfers. The October framework introduces charges for specified merchant transactions. 

3. Does Paying Through e-NPS Remove PoP Charges?

Only eligible subscribers originally onboarded through e-NPS receive that exemption when contributing through e-NPS or D-Remit. Changing the contribution channel alone does not remove existing PoP liability. 

4. Are Audit Reports And Income-Tax Returns Due Together?

No. Covered audit reports are due on 21 October 2026. The related return deadline is 21 November 2026. 

5. Do The Deposit Rules Guarantee Higher FD Interest?

No. The directions govern disclosure and treatment of deposit rates. They do not prescribe an increase in returns.