New Delhi, October 15: The National Payments Corporation of India (NPCI) has pushed back the introduction of Merchant Discount Rate charges on select UPI merchant payments until after Diwali. The charges were due to come into effect on October 15.
The decision was taken by NPCI’s UPI and Services Steering Committee in view of the festive season. A fresh implementation date will be announced separately.
The proposed framework provides for a 0.4 per cent fee on eligible Person-to-Merchant UPI transactions above ₹2,000, capped at ₹300 per transaction. The fee, known as MDR, is paid by merchants towards processing digital payments.
The postponement gives banks, payment companies and merchants additional time to prepare during the festive shopping rush. It changes the rollout schedule, while the proposed fee structure remains unchanged.
