UPI MDR May Be Put on Hold Until January 2027
India's plan to introduce charges on select UPI merchant payments may have to wait until next year. The government is reportedly considering postponing the rollout of the new Merchant Discount Rate (MDR) framework from October 15, 2026, to January 1, 2027, following objections from retailers and concerns over its implementation during the festive season.
The proposal is still under discussion, and no final decision has been announced.
The possible delay comes as retailers argue that introducing payment charges just before the festive shopping period could put additional pressure on businesses already operating on thin margins. For banks and payment companies, however, a postponement would mean waiting longer for revenue from eligible UPI transactions.
According to reports, the NPCI-led UPI and Services Steering Committee met on October 7 to discuss the rollout and clarify parts of the framework. Authorities are also considering exempting businesses with annual turnover of up to ₹40...
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