NPCI Defers Planned UPI Merchant Discount Rate Rollout Until After Diwali

13 Oct 2026, 1:41 pm · 3h ago · 1 min read · Inc42

The National Payments Corporation of India (NPCI) has postponed the rollout of a merchant discount rate (MDR) on select UPI person-to-merchant transactions until after Diwali. Pushing back the October 15 implementation, the UPI and Services Steering Committee cited the festive shopping season for the delay. The proposed framework plans a 0.40% MDR capped at ₹300 on eligible transactions exceeding ₹2,000, while exempting transactions below ₹2,000, peer-to-peer transfers, and merchants with annual turnover under ₹40 lakh. Trade bodies like AIMRA and AICPDF strongly opposed the charges, prompting government discussions.