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Updated: 30 September 2026

MDR on UPI applicable from 15th Oct 2026

FAQ Dated: 30/09/2026
The Government of India made an announcement with regards to application of MDR on UPI payments. All peer to merchant (resident to society) transactions above Rs 2000/- will have a fee of 0.4% + GST levied from 15th Oct 2026. 

Societies across the country have been reaching out to us over whatsapp groups and other channels to understand the impact of these charges in their next billing cycle. This email to clarify this handling of the fee and subsequent payout to your society’s bank account.

Mygate is a collection platform

Societies use Mygate ERP to issue invoices against maintenance or utility services provided to the community members. Residents use the Mygate app to pay these invoices with their payment mode of choice.

Mygate works only as a facilitator in the above relationship where residents are the payers and society is the merchant.

Who bears the MDR on UPI

Traditionally, when paying society bills with modes such as cards and net banking; banks and gateways have charged convenience fees to the residents. This has always ensured that the full amount of the bill gets credited to the society's account. We are exploring a similar fee structure on UPI with our gateway and banking partners, which will make sure that society gets the full invoiced amount. Details are expected to be finalized by the 1st week of Oct.

We will keep you updated with a follow up email for all the scenarios.

Invoicing and Payment related options on Mygate

  • Mygate provides multiple payment modes (including debit cards, credit cards, net banking and wallets) for residents to pay their bills. They can choose any other method if they do not wish to use UPI.

  • Split your line items into multiple bills - If you load all your collection items (maintenance, electricity, water, parking, etc.) on a single bill, you can break it down into parts. While the number of bills generated per month will increase, the value of these invoices will reduce ensuring lower/no extra charges for the residents. This may impact your GST filing process - please discuss with your CA/accountant before implementing this.

  • Partial payments - you can enable the ‘partial payment’ option for your residents. They can do multiple smaller payments to cover the entire bill amount. This may have on ground concerns with collection and reconciliation - please discuss with your CA/accountant before implementing this.

  • Change your billing frequency for October bills - if your society raises monthly bills, you can generate quarterly bills for the next cycle (October-December) in the next few days. This will provide the residents ample time to pay (before 15th Oct) and avoid extra charges for at least 3 months. This is only a temporary measure for the short term.

Given the evolving situation, we are receiving new inputs from our payment & banking partners every day on this topic. We request your understanding and cooperation in this regard. We will keep sharing updates over email and other channels in the next few weeks. 

For any other urgent issues or clarifications, you can reach out to our support team on support@mygate.com