An unverified app proposing to split UPI payments into small installments to avoid merchant fees has sparked debate regarding potential fraud risks.
Reader brief
Through the Reader lens: A proposed application claims to help merchants avoid upcoming UPI transaction fees by splitting payments into installments of ₹1,999. Starting October 15, 2026, a 0.4% Merchant Discount Rate applies to merchant transactions over ₹2,000, while personal transfers remain free. Critics warn that breaking large payments into multiple small transactions could trigger bank security protocols or be flagged as fraudulent activity. The authenticity of the app remains unverified.
What to watch next
- Bank and regulatory responses to transaction splitting behaviors.
- The official implementation of the 0.4% MDR on October 15, 2026.
- Potential development of similar tools or countermeasures by payment platforms.
What was said1
Attributed, verbatim. Every quote is checked against the article it came from. One that does not match is not shown.
Akhil Agarwal
1 quote“UPI, but with a little jugaad”
In the article
…instalments. The idea has sparked considerable debate on LinkedIn. Shared by CA Akhil Agarwal, the screenshot drew amusement, several practical questions and warnings from commenters. Agarwal described the idea as “ UPI, but with a little jugaad ”. He asked whether splitting payments into smaller amounts could help avoid charges. LiveMint could not independently verify the app's authenticity. Quick answers to key questions The app claims to split UPI payments…