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NPCI Defers Merchant Discount Rate on UPI Transactions Until After Diwali
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News18•13-10-2026, 14:00
NPCI Defers Merchant Discount Rate on UPI Transactions Until After Diwali
- •The decision to levy a 0.4 per cent Merchant Discount Rate on UPI transactions over Rs 2,000 has been officially deferred.
- •NPCI announced that a new implementation date will be decided after the festive season following a meeting of the UPI and Services Steering Committee.
- •The proposed MDR is meant to be paid by merchants rather than consumers, with a cap of Rs 300 for transactions amounting to Rs 75,000 or more.
Key Questions Answered
The implementation of the Merchant Discount Rate on select UPI transactions has been deferred, with NPCI announcing that a new date will be decided after Diwali.
The MDR charges must be paid by merchants rather than consumers, and the fee is capped at Rs 300 for transactions amounting to Rs 75,000 or more.
A Merchant Discount Rate of 0.4 percent was proposed to be levied on Person-to-Merchant UPI transactions exceeding Rs 2,000.
