NPCI Defers UPI Merchant Discount Rate Implementation Until After Diwali

13 Oct 2026, 1:49 pm · 3h ago · 1 min read · Entrackr

The National Payments Corporation of India (NPCI) has deferred the implementation of the merchant discount rate (MDR) on select Unified Payments Interface (UPI) transactions until after Diwali. Decided on October 13 by the UPI and Services Steering Committee, the move postpones the previously scheduled October 15 rollout to protect festive commerce. Under the framework, a 0.4% MDR capped at Rs 300 will apply to eligible merchant transactions above Rs 2,000, while smaller payments, person-to-person transfers, and 96% of merchant transactions remain free. Specific sectors like fuel, railways, and telecom will incur a flat Rs 5 fee.