NPCI May Defer UPI MDR Rollout to January 2027 Following Retailer Pushback

8 Oct 2026, 11:06 am · 4h ago · 1 min read · Inc42

The National Payments Corporation of India is considering postponing the implementation of merchant discount rates on select UPI transactions to January 1, 2027. The proposed deferral from the earlier October 15 deadline follows strong pushback from retail trade associations aiming to maintain zero fees through the festive season. Additionally, the UPI and Services Steering Committee is weighing a significant expansion of exemptions for businesses generating up to ₹40 lakh in annual turnover. Under the framework, a 0.40% fee capped at ₹300 applies to person-to-merchant payments exceeding ₹2,000, while consumers remain exempt from transaction charges.