UPI and Services Steering Committee today decided to implement MDR on select Person-to-Merchant(P2M) UPI transactions post Diwali
UPI MDR rollout deferred until after Diwali: The National Payments Corporation of India(NPCI)on Tuesday has decided to implement the merchant discount(MDR) charges on UPI transactions until after Diwali. The government has taken this decision in view of the festive season. Merchants have been demanding the government to postpone the decision to charge on UPI payments. This decision was to be implemented on October 15.
NPCI, in a statement said, ‘UPI and Services Steering Committee today decided to implement MDR on select Person-to-Merchant(P2M) UPI transactions post Diwali. Date to be notified separately. Earlier, the MDR on UPI payments above Rs 2000 which was supposed to be applicable from October 15, 2026. Last month, the UPI Steering Committee fixed the UPI MDR at 0.4 percent or 40 basis points for transactions above Rs 2,000.
A delay is expected to help prevent disruptions to retail payments during this period and give payments companies more time to prepare their system.
