Failure Patterns, Disputes, Security and Official Sources
Official sources on merchant payment fees in India: where to check MDR, UPI and tax rules
The RBI, NPCI, Department of Financial Services, gazette, tax and complaint websites Indian merchants should use to check payment fee rules, with what to look for on each.
Payment fee rules in India changed several times in 2025 and 2026: a new Master Direction on Payment Aggregators (September 2025), RBI authentication directions (in force from 1 April 2026), the Income-tax Act, 2025 (from 1 April 2026), an amended section 10A of the Payment and Settlement Systems Act with notification S.O. 5067(E) (14 September 2026), and NPCI's UPI MDR framework, deferred on 13 October 2026 to after Diwali. When a provider, a social-media post or even this site tells you a rate or a rule, check it at the source. This guide lists the official websites, what each covers and how to read them. It belongs to the failure patterns overview.
Who decides what
| Body | Role in merchant payments | Website |
|---|---|---|
| Reserve Bank of India (RBI) | Regulates payment systems, banks and payment aggregators; card rules, debit MDR caps, tokenisation, authentication, TAT for failed transactions | rbi.org.in |
| National Payments Corporation of India (NPCI) | Operates UPI, RuPay and other systems; UPI circulars, PPI interchange, UPI MDR implementation | npci.org.in |
| Department of Financial Services (DFS), Ministry of Finance | Notifies charge-free modes under PSS Act s.10A; FAQs on UPI MDR | financialservices.gov.in |
| Gazette of India | Official text of notifications such as S.O. 5067(E) | egazette.gov.in |
| India Code | Consolidated Acts, including the PSS Act, 2007 | indiacode.nic.in |
| Income Tax Department | Section 187 of the Income-tax Act, 2025 (obligation for businesses above ₹50 crore) and rules on prescribed modes; TDS provisions | incometaxindia.gov.in |
| CBIC | GST rates and notifications on financial services | cbic-gst.gov.in |
| GST portal | Returns and GSTR-2B for input tax credit | gst.gov.in |
| MeitY | DPDP Act and Rules | meity.gov.in |
| PCI Security Standards Council | PCI DSS | pcisecuritystandards.org |
What to check, by question
| Question | Where to look |
|---|---|
| Is my provider authorised? | RBI: lists of authorised payment system operators and payment aggregators |
| Is UPI free for my shop? | DFS FAQ on MDR on select UPI P2M transactions; NPCI press releases for the implementation date |
| Which modes are charge-free by law? | Gazette: S.O. 5067(E) of 14 Sept 2026 |
| What is the debit card MDR cap? | RBI: rationalisation of MDR for debit card transactions |
| What does the PA direction say about settlement and escrow? | RBI: Master Direction on Regulation of Payment Aggregator (15 Sept 2025) |
| Can I store card numbers? | RBI: card-on-file tokenisation circulars; PA Master Direction annexure |
| What are the authentication rules? | RBI: Authentication Mechanisms for Digital Payment Transactions Directions, 2025 |
| Must my business offer RuPay and UPI? | Income Tax Department: section 187 and the rules |
| What GST applies to fees? | CBIC rate notifications |
| A failed payment has not been reversed | RBI: TAT circular of 20 Sept 2019; then the provider's grievance desk |
How to read official documents
- Check the date and reference. RBI documents carry a reference such as "RBI/DPSS/2025-26/141"; gazette notifications carry an S.O. or G.S.R. number.
- Look for "effective from". Many rules take effect later than the issue date. The UPI MDR FAQ named 15 October 2026, but NPCI's later release deferred it.
- Prefer the latest document. A Master Direction consolidates earlier circulars and replaces them.
- Distinguish FAQs from rules. FAQs explain; directions, Acts and notifications bind.
- Beware of copies. Forwarded PDFs and social-media images can be fake or outdated. Open the document on the official site.
- Some sites block automated access. If a page will not load, try later from a normal browser.
Complaints and help
| Problem | First step | Next |
|---|---|---|
| Wrong charge or rate by your acquirer or PA | Provider's merchant support, then grievance officer, then nodal officer | RBI complaint management system (cms.rbi.org.in), if your complaint is eligible |
| Customer complaint about a payment | Check settlement and provider app | Customer may go to their bank, the National Consumer Helpline or consumer commissions |
| Fraud | 1930 helpline and cybercrime.gov.in | Police cyber cell |
| GST on fees | Your accountant | CBIC helpdesk |
| ₹50 crore rule | Your chartered accountant | Income Tax Department |
Questions to put to a professional
- Chartered accountant: GST input tax credit on fees, booking gross vs net, TDS on gateway service fees, the ₹50 crore threshold and penalty under the 2025 Act.
- Lawyer: surcharges and convenience fees, contract terms with a PA, DPDP compliance for customer data, disputes with a provider.
- Your bank or PA: rate card, settlement, device terms, how the UPI MDR will be applied.
Keeping up to date
| Source | What to watch |
|---|---|
| NPCI press releases | UPI MDR implementation date, category changes, limits |
| RBI notifications | Payment aggregator, card and authentication changes |
| DFS | Notifications under s.10A, FAQs |
| CBIC | GST rate changes |
| Your provider | Rate change notices by email or in the app |
Review your effective rate after every change. The site's guides on the UPI MDR, zero charge and payment aggregator rules summarise the documents above.
FAQ
Is a provider's blog or FAQ an official source?
No. It can be useful, but check the rule on the RBI, NPCI, DFS or gazette site.
Where do I find the exact UPI MDR start date?
On NPCI's press release page. As of 28 October 2026, NPCI had said only "immediately post Diwali at a date to be notified separately".
Can the RBI help with a dispute with my payment aggregator?
The RBI's complaint system covers regulated entities and eligible complainants; check its scheme for whether a business complaint qualifies.
Why does this site not list provider prices?
Provider prices change often and vary by merchant. We explain how pricing works with illustrative figures; your written offer is the source for your rates.
