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NPCI Defers UPI MDR Rollout to Post-Diwali Amid Festive Season
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CNBC TV18•13-10-2026, 13:29
NPCI Defers UPI MDR Rollout to Post-Diwali Amid Festive Season
- •The National Payments Corporation of India has delayed the rollout of Merchant Discount Rate on select UPI transactions to immediately after Diwali.
- •The decision was made by the UPI and Services Steering Committee to protect merchant profitability and avoid confusion during the peak festive shopping season.
- •Shares of major payment companies including Paytm, Pine Labs and MobiKwik initially dropped up to 7 percent following the news, but later recovered after clarity that the rollout was only deferred.
- •Industry experts note that the extra time will allow banks, fintech firms and merchants to better prepare their systems for the new fee structure.
- •The proposed MDR framework includes a 0.4 percent charge on select P2M UPI transactions above 2000 rupees, with a cap of 300 rupees for larger transactions.
Key Questions Answered
The rollout of the Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions has been deferred to immediately after Diwali, with a new implementation date to be announced separately.
The UPI and Services Steering Committee decided to postpone the implementation, which was originally scheduled for October 15, specifically to keep the festive season in mind and avoid confusion during peak business times.
The proposed changes involved a 0.4% MDR on select Person-to-Merchant (P2M) UPI transactions exceeding ₹2,000, along with a maximum cap of ₹300 for transactions of ₹75,000 and above.
