₹1,999 UPI installment app arrives: Social media reacts: ‘Can easily be labeled a scam’ | Today’s news
Here comes an app that claims to split UPI payments ₹1,999 installments. The idea sparked considerable debate on LinkedIn. The screenshot shared by CA Akhil Agarwal drew amusement, some practical questions and warnings from commenters.
Agarwal described the idea as “UPI but with a bit of jugaad”. He asked whether splitting payments into smaller amounts could help avoid fees.
LiveMint could not independently verify the authenticity of the app.
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The app claims to split UPI payments into installments of ₹1,999 by providing separate QR codes for each installment and asking for the account holder’s UPI ID and name.
Commenters worry that breaking up large payments into many smaller transactions could trigger banks to scrutinize for suspicious activity that could resemble fraudulent behavior.
From October 15, 2026, business payments above ₹2,000 will attract 0.4% MDR with a maximum limit of ₹300, while transactions below this amount will remain free for personal transfers.
Users should not worry about fees as UPI face-to-face transfers remain free; however, merchants will be charged for transactions above ₹2,000.
The new MDR rules are expected to create a significant revenue pool for the banking sector and potentially increase the profits of banks involved in processing UPI payments.
Read also | UPI Payments: GST is applicable on MDR but customers should not bear the cost
The screenshot shows the tool asking for UPI ID, account holder name and amount. It then offers separate QR codes for payments up to the above ₹1,999 each.
Shows an example ₹4,500 divided into three QR codes. The page promises: “Withdraw full amount. Pay.” ₹0 fees.” They also claim that payment information never leaves the browser.
However, a screenshot alone does not determine whether the app is working or evading the applicable charges. It’s also not clear if this is a real app or just an idea.
A screenshot of the app in question(Additional image: Pexels)
Several commenters questioned whether the idea would remain appropriate for larger payments. One asked if sending ₹2,00,000 would require entering the UPI PIN approximately 100 times.
Another warned that repeated payments could attract bank watchdogs. “It could easily be called a scam,” the commenter wrote.
Read also | Paytm’s unexpected UPI faces reality check from MDR sharing, competition
The comment suggested that sudden payment outages could indicate suspicious activity on the account. These were concerns raised online, not app findings.
Others questioned the need for such a tool, noting that face-to-face transfers remain free. Some joked that the authorities might eventually charge by transaction numbers instead.
“Exactly, that’s the catch,” Agarwal replied to a comment raising the possibility.
The debate also turned to who should fund India’s digital payments network. One commenter argued that the government should bear the cost of infrastructure through existing tax collections.
Agarwal responded that deciding who ultimately pays remains a bigger question.
Another suggested that larger payment companies could offer cashback to attract customers. Agarwal replied, “Scale becomes a serious advantage there.”
Read also | UPI MDR debate heats up: How industry leaders reacted to the move
UPI payment charges
The discussion is about merchant charges, not the new tax on regular UPI users. The new framework will enter into force on 15 October 2026.
According to the Ministry of Finance, personal transfers remain free regardless of the amount. Customers making payments to merchants will not pay the merchant discount rate (MDR).
Merchant payments above ₹2,000 will attract 0.4% MDR subject to a maximum limit ₹300. Payments up to ₹2,000 and eligible small traders remain exempt.
Some essential industries face the flat ₹5 fee for payments above ₹2000. The ministry says around 96% of business transactions remain intact.
