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NPCI Defers UPI Merchant Charges Until After Diwali
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Firstpost•13-10-2026, 14:52
NPCI Defers UPI Merchant Charges Until After Diwali
- •The National Payments Corporation of India has postponed the implementation of Merchant Discount Rate on select UPI merchant transactions until after Diwali.
- •An MDR of 0.4 percent will apply 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 through existing QR codes will continue under the zero-MDR framework.
- •Approximately 96 percent of all P2M transactions will remain unaffected by the proposed framework.
- •Person-to-person UPI transfers will remain completely free regardless of the transferred amount.
Key Questions Answered
The implementation of the Merchant Discount Rate on select UPI transactions has been deferred until after Diwali, with a new rollout date to be announced separately.
Approximately 96 percent of all person-to-merchant UPI transactions will remain completely unaffected by the proposed framework.
Transactions of up to Rs 2,000 will remain free, while an MDR of 0.4 percent applies to specified merchant transactions above Rs 2,000, capped at Rs 300 for transactions exceeding Rs 75,000.
