Stories
NPCI Postpones UPI Merchant Transaction Charges Until After Diwali
N
News18•13-10-2026, 14:15
NPCI Postpones UPI Merchant Transaction Charges Until After Diwali
- •The UPI and Services Steering Committee decided to defer the Merchant Discount Rate on select Person-to-Merchant UPI transactions until after Diwali.
- •The implementation timeline was adjusted to account for the festive season, with the exact effective date to be announced later.
- •Under the previously announced framework, an MDR of 0.4 percent applies to specified merchant transactions above Rs 2,000, while transactions up to Rs 2,000 remain free.
- •Small merchants collecting up to Rs 1 lakh per month and all person-to-person UPI transactions will continue to remain under the zero-MDR framework.
- •The Finance Ministry previously stated that about 96 percent of all P2M transactions will remain unaffected by the new framework.
Key Questions Answered
The Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions will be implemented immediately after Diwali, with the exact implementation date to be notified separately.
An MDR of 0.4 percent applies to specified merchant transactions above Rs 2,000, capped at Rs 300 for amounts exceeding Rs 75,000, while transactions up to Rs 2,000 remain free. Small merchants collecting up to Rs 1 lakh per month via existing QR codes and all person-to-person (P2P) transfers remain covered under zero-MDR frameworks.
The UPI and Services Steering Committee decided to defer the charges specifically keeping the festive season in consideration.
