The National Payments Corporation of India (NPCI) has deferred the introduction of merchant discount rate (MDR) on select UPI person-to-merchant (P2M) transactions until immediately after Diwali, pushing back the October 15 rollout.
The NPCI said its UPI and Services Steering Committee took the decision keeping the festive season in mind. The revised implementation date will be notified separately.
The announcement confirms a delay in the rollout but does not set January 1, 2027, as the new deadline, as earlier reports had suggested.
Under the proposed framework UPI MDR, merchants would be charged an MDR of 0.40% on eligible P2M UPI transactions above ₹2,000, capped at ₹300 per transaction.
The move had faced significant push back from retail traders’ associations. The committee was also reportedly considering exempting businesses with an annual turnover of up to ₹40 Lakh from the proposed fee.
(The story will be updated soon)
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