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UPI MDR Charges Deferred Till Diwali As Traders Demand Permanent Removal
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News18•13-10-2026, 22:35
UPI MDR Charges Deferred Till Diwali As Traders Demand Permanent Removal
- •The Central Government has temporarily deferred MDR charges on UPI commercial payments until Diwali, providing short-term relief to merchants.
- •Trade organizations like FORTI and Bharat Udyog Vyapar Mandal have welcomed the move but demanded a complete rollback of the charges.
- •Traders had previously observed No UPI Day on October 2 across the country to protest against the imposition of these charges.
- •Organizations argue that MDR charges would negatively impact both business owners and consumers, hindering the growth of digital payments.
Key Questions Answered
The Central Government and the National Payments Corporation of India (NPCI) deferred the decision until after Diwali to avoid coinciding with the peak festive shopping season and to give payment service providers extra time to upgrade their systems and technical preparations.
Trade organizations such as FORTI and BUVM have welcomed the temporary deferral, but they are demanding that the government completely abolish and permanently withdraw MDR charges on commercial UPI payments instead of just offering temporary relief.
In protest against the proposed MDR charges on commercial UPI use, trade organizations observed 'No UPI Day' on October 2 to express their strong displeasure and concerns over additional digital payment fees.
