NPCI defers 0.4% fee on UPI transactions above ₹2,000 until after Diwali

The National Payments Corporation of India (NPCI) has deferred the implementation of the 0.4 percent Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions over Rs 2,000, which was originally scheduled to take effect on October 15. Following a trade delegation meeting with Finance Minister Nirmala Sitharaman and pushback from the opposition, the NPCI announced that a new rollout date will be decided after Diwali, providing timely relief to merchants and MSMEs during the festive season.

Published - October 13, 2026 03:23 pm IST