India's New UPI MDR Rules Set to Hit Forex and Crypto Traders
The Indian government has introduced new Merchant Discount Rate (MDR) rules that will take effect on October 15, 2026. The rules impose a 0.4% charge on certain transactions made through the Unified Payments Interface (UPI), which is a popular payment system in India.
Although forex and crypto traders in India are not directly liable for this 0.4% trading tax, they may still feel the impact of higher INR payment costs. This could lead to reduced fiat onramps, lower liquidity, and increased trading costs.
The increase in transaction charges may force CEXs (centralized exchanges), DEXs (decentralized exchanges), and payment platforms to adjust their fees, routing, or onboarding processes. This could negatively affect crypto adoption and trading costs for users in India.