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UPI MDR Decision Hangs in Balance as Key Steering Committee Meeting is Called Off
M
Moneycontrol•09-10-2026, 21:21
UPI MDR Decision Hangs in Balance as Key Steering Committee Meeting is Called Off
- •The UPI Steering Committee meeting scheduled for October 9 to decide on the MDR did not take place, leaving the timeline uncertain.
- •NPCI is considering proposals to potentially postpone the implementation of UPI MDR to January 2027, though no final decision has been reached.
- •Merchant bodies, fintechs, and payment companies had requested a postponement due to festive sales concerns and confusion over varying rates.
- •Last month, the committee had fixed the MDR at 0.4 percent for transactions above Rs 2,000, drawing pushback from merchants and political circles.
- •Shares of major payment companies including Paytm, MobiKwik, and Pine Labs fell by 5 percent following the news of the delay.
Key Questions Answered
The UPI Steering Committee meeting scheduled for the morning of October 9 to decide on the MDR did not take place, leaving the timeline for a final decision and implementation in limbo.
Merchant bodies, fintechs, and payments companies requested a postponement due to worries about weakening consumer sentiment ahead of festive sales, rising inflation, and confusion regarding varying MDR rates and policies.
The UPI Steering Committee fixed the Merchant Discount Rate at 0.4 percent, or 40 basis points, for transactions above Rs 2,000, which translates to Rs 8 for every Rs 2,000 spent.
