NPCI Defers MDR Charges on Select UPI Transactions

The National Payments Corporation of India (NPCI) has postponed the implementation of the Merchant Discount Rate (MDR) on select person-to-merchant (P2M) UPI transactions. According to the official statement, the UPI and Services Steering Committee decided to introduce the charges after Diwali, taking the festive season into consideration. The revised fee structure was initially scheduled to take effect on October 15.

However, NPCI has not yet officially announced the new implementation date. Reports suggesting that the charges will take effect from January 1, 2027, have not been confirmed in the statement cited. Merchants and payment service providers will have to await a further announcement from NPCI for the confirmed timeline. The postponement gives businesses and payment companies additional time to prepare during the festive shopping season.