Relief for merchants during the festive season; implementation of UPI MDR deferred

 

 

The National Payments Corporation of India (NPCI) has announced that the implementation of the 'Merchant Discount Rate' (MDR) for UPI transactions has been postponed until after Diwali. It was previously announced that the MDR would come into effect on October 15. However, merchant associations and fintech firms had requested a delay in the rate hike, citing concerns that it would adversely affect business during the festive season. The UPI and Services Steering Committee decided to defer the move after considering these requests from merchants.

The NPCI stated in a press release that the exact date for implementing the decision would be announced later. The NPCI plans to levy an MDR of 0.4 percent on select UPI transactions exceeding ₹2,000. This decision will help merchants save a significant amount of money during the high-volume festive trading period. Further clarity regarding the implementation date and the specific categories of transactions affected is expected in the coming days.