UPI MDR rollout may be deferred beyond festive season to Jan 1; shares fall: Report
The committee is weighing a delay to after the festive season as merchants and payment firms brace for a 0.4% charge on transactions above Rs 2,000.
- Authorities are considering deferring the Unified Payments Interface merchant discount rate rollout to January 1, 2027, from the original October 15 date, aiming to provide relief to retailers during the peak festive season.
- Wholesale traders and retailers recently observed a 'No UPI Day' to protest the proposed MDR on transactions above Rs 2,000, as industry associations raised concerns about increased business transaction costs during the festive period.
- The Supreme Court recently refused to stay the Centre's decision imposing a 0.4% charge on Person-to-Merchant transactions above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 and above.
- Reserve Bank of India Governor Sanjay Malhotra stated he does not expect the new guidelines to impact transaction volumes, while payment aggregators negotiate with sponsor banks to retain 50% to 80% of the acquiring banks' share.
- The Service Steering Committee is considering exempting businesses with annual turnover up to Rs 40 lakh from the fee, significantly expanding protections for smaller merchants under the new framework.
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No UPI MDR From October 15? Government May Defer New Charges Amid Festive Season | 📰 LatestLY
The implementation of the Merchant Discount Rate (MDR) on select Unified Payments Interface (UPI) transactions, earlier scheduled to begin from October 15, may be postponed until January 2027, according to a Times of India report. 📰 No UPI MDR From October 15? Government May Defer New Charges Amid Festive Season.
India may delay the introduction of a fee for larger transactions in the popular UPI (Unified Payment Interface) payment system by a few months, regulatory and industry sources have revealed.
UPI MDR rollout may be delayed until festive season ends: Report
NPCI is considering delaying the 0.4% MDR on UPI transactions above Rs 2,000 after requests from merchants and payments firms. The proposed deferral reflects confusion over category-wise charges and concern over festive season costs.
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