Due to the emergence of information regarding the introduction of a 0.4% commission for transactions via Unified Payments Interface (UPI), especially for payments exceeding 2000 rupees, there is increased interest among sellers. This deduction, known as Merchant Discount Rate (MDR), is planned to take effect on October 15, 2026.
Meanwhile, a website claiming to be able to avoid fees for large payments by breaking them down into small parts not exceeding 1999 rupees is circulating on social media. Users are examining these viral applications.
The new MDR rule for UPI is set to come into effect on October 15, 2026. Before this date, an application appeared on the market that claims the ability to bypass the 0.4% fee. Using this tool, large sums can be divided into smaller components.
For example, if a payment of 4500 rupees is required, this application allegedly can split this amount into three parts by generating separate QR codes. These parts might look like two payments of 1999 rupees and one payment of 502 rupees, allowing the entire amount to be received in three stages.
Currently, discussions are ongoing regarding whether such applications are fakes or actually function correctly. Nevertheless, it is strongly recommended to avoid using any unverified applications, as their use could jeopardize your bank account.
Essentially, the Indian government has introduced a new rule for UPI transactions. If the transaction is from an individual to a seller (P2M), an MDR of 0.4% may be applied when receiving an amount exceeding 2000 rupees. Some sellers are attempting to use similar applications to circumvent this commission.
The interface of payment splitting applications is quite simple. The user needs to enter their UPI ID and name. Then, they must specify the total payment amount. The application claims that it will divide this amount into small parts, each less than 1999 rupees, thereby ensuring that no single payment exceeds the established limit.
It is important to avoid such unverified applications, as it cannot be guaranteed that all of them are safe or have been vetted. Using such software poses a risk to your personal information and bank account security. Therefore, before sharing your UPI ID, bank details, or any other confidential information with an unknown application, thorough verification is necessary.