MDR charges on UPI payments will be implemented post-Diwali, says NPCI

The National Payments Corporation of India (NPCI) announced on Tuesday (October 13, 2026) that the proposed Merchant Discount Rate (MDR) on person-to-merchant UPI payments will be implemented after Diwali.

Also read: Banks and govt. should bear UPI charges, say merchants

NPCI said, “UPI and Services Steering Committee on Tuesday (October 13, 2026) decided that, keeping in mind the festive season, the Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented post-Diwali immediately on a date to be notified separately.”

Earlier, Reserve Bank of India Governor Sanjay Malhotra on Wednesday (October 7, 2026) said levying a “small fee” in the form of merchant discount rate (MDR) will not have a “major impact” on UPI transaction volumes.

“As of now, we do not see any drop in volumes. And I don’t personally think that a small fee will have a major impact on the volumes,” he told reporters at the central bank headquarters in Mumbai.

It can be noted that last month, the government allowed charging of the MDR, under which transactions above ₹2,000 will attract a fee of 0.4%.