NPCI Delays UPI Merchant Charges Until After Diwali
The National Payments Corporation of India (NPCI) announced on October 13 that it will delay the implementation of the Merchant Discount Rate (MDR) on select Unified Payments Interface (UPI) transactions until immediately after Diwali, moving beyond the originally scheduled October 15 rollout.
In an official post on X, NPCI said its UPI and Services Steering Committee had taken the decision, "keeping in mind the festive season," and that MDR "shall be implemented immediately post Diwali at a date to be notified separately."
The announcement provides temporary relief to retailers concerned about additional payment processing costs during festive shopping. However, the proposed charges have not been withdrawn, and NPCI has yet to announce a revised implementation date.
What Changes for Merchants?
Under the proposed framework, a 0.4% MDR will apply to specified person-to-merchant (P2M) UPI transactions exceeding ₹2,000, with the fee capped at ₹300 per transaction.
For instance, a merchant receiving...
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