Stories
NPCI Postpones MDR on UPI Transactions Until After Diwali
- •The National Payments Corporation of India has postponed the implementation of the Merchant Discount Rate on selected merchant transactions until after Diwali.
- •General public UPI payments remain unaffected, and the new date for implementing MDR will be announced separately.
- •An MDR of 0.02 percent will apply to selected stock market and investment-related transactions, with a maximum fee of 300 rupees for transactions of 15 lakh rupees or more.
- •UPI transactions up to 2,000 rupees and peer-to-peer transactions are completely exempt from MDR charges.
- •Separate flat rates and charges apply to specific sectors including railways, telecommunications, insurance, and fuel.
Key Questions Answered
The National Payments Corporation of India (NPCI) postponed the implementation of the Merchant Discount Rate (MDR) on selected merchant transactions until after Diwali, keeping the festive season in mind. The new implementation date will be announced separately.
No, UPI transactions up to ₹2,000 are completely exempt from MDR, along with peer-to-peer (P2P) transactions and most everyday daily purchase payments. However, an MDR of 0.4% will apply to selected person-to-merchant (P2M) transactions exceeding ₹2,000.
Fees may apply to selected UPI transactions on mutual funds, stock brokers, security dealers, and investment-related platforms, with a 0.02% MDR levied on stock market and investment transactions. Additionally, separate flat rates such as ₹5 have been announced for specific sectors like railways, telecommunications, insurance, and fuel.
