Jewellery retailers face margin pressure from UPI MDR and higher hallmarking fees
Indian jewellery chains including Titan, Kalyan Jewellers, PC Jeweller and Thangamayil face added costs from a 0.4% MDR on UPI merchant payments above Rs 2,000 and a 67% increase in gold hallmarking fees. The changes take effect in September and October 2026.
What happened
Indian jewellery retail sector · Indian jewellery retailers face higher transaction and compliance costs after a new 0.4% UPI MDR and a 67% rise in BIS gold
Key facts
- 0.4% MDR on P2M UPI transactions above Rs 2,000
- Rs 300 maximum charge for payments of Rs 75,000 and above
- Gold hallmarking fee increased 67%, from Rs 45 to Rs 75 per article
- Rs 200 minimum gold consignment charge
- New hallmarking rates effective September 14, 2026
What changed
Indian jewellery retailers face higher transaction and compliance costs after a new 0.4% UPI MDR and a 67% rise in BIS gold hallmarking fees. Shares of Titan, Kalyan, PC Jeweller and peers weakened on margin-pressure concerns.
Why this matters
Titan, Kalyan Jewellers, PC Jeweller and Thangamayil face a modest but broad-based margin headwind as 0.4% UPI MDR above Rs 2,000 and sharply higher hallmarking fees raise operating costs.
What to watch
- Final regulatory notification details, exemptions, implementation rules, and whether the 0.4% UPI MDR is capped or subject to GST.
- September 2026 UPI payment-mix changes for transactions above Rs 2,000 and merchant adoption of alternative payment methods.
- October 2026 hallmarking fee schedules, any relief for small items or bulk submissions, and operational turnaround times.
- Company commentary on making-charge revisions, customer surcharge policies, and ability to pass through costs.
- Festive and wedding-season sales growth, average selling price, conversion rates, and discount intensity.