UPI MDR rollout deferred until after Diwali
NPCI said the new date will be announced after Diwali, giving merchants and users a reprieve from charges on select payments above Rs 2,000.
- On Tuesday, the National Payments Corporation of India announced that Merchant Discount Rate charges on select Person-to-Merchant UPI transactions will be implemented immediately after Diwali, deferring the original October 15 rollout.
- Under the Payments Regulatory Framework, the UPI Steering Committee had scheduled a 0.4 per cent MDR charge on merchant transactions exceeding Rs 2,000 to take effect on October 15, 2026.
- NPCI estimates the changes affect about 4 per cent of merchant transactions, leaving over 95 per cent of payments outside the framework; select categories face a flat Rs 5 levy for payments over Rs 2,000.
- Small merchants using Person-to-Merchant models remain exempt from MDR, while capital market payments face a lower MDR of 0.02 per cent, subject to a Rs 300 cap per transaction.
- Economic think tank GTRI urged the government to withdraw proposed UPI charges to keep the digital payment system free for merchants and consumers, prompting this deferral.
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Congress Alleges Modi Govt Preparing For Another UPI U-Turn
The Congress party has questioned the Modi government's decision to defer the Merchant Discount Rate (MDR) on UPI transactions, alleging a potential "U-turn on the U-turn." Congress general secretary Jairam Ramesh highlighted previous denials by the finance minister regarding MDR imposition, only for it to be announced later and now deferred. He expressed concerns about future charges on UPI transactions.
NPCI has postponed the decision to introduce Merchant Discount Rate (MDR) for select UPI transactions. The announcement was made on Tuesday, October 13.
Govt postpones charges on UPI transactions over Rs 2,000
New Delhi: In a major relief to UPI users, the decision to levy a Merchant Discount Rate of 0.4 per cent on transactions over Rs 2,000 has been deferred, with NPCI on Tuesday, October 13, saying a new date for the implementation will be decided after Diwali. According to the National Payments Corporation of India … Get the latest updates in Hyderabad City News, Technology, Entertainment, Sports, Politics and Top Stories on WhatsApp & Telegram by…
Good News for Merchants This Diwali: NPCI Defers UPI MDR Implementation on Select Transactions
The National Payments Corporation of India (NPCI) has deferred the implementation of the Merchant Discount Rate (MDR) on select Person-to-Merchant UPI transactions until after Diwali. The proposed framework, featuring a 0.4 per cent fee on transactions over INR 2,000, was delayed to support businesses and shoppers during the peak festive season. Good News for Merchants This Diwali: NPCI Defers UPI MDR Implementation on Select Transactions.
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