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NPCI defers UPI merchant MDR until after Diwali
The Hindu BusinessLine··4d ago
NPCI deferred Merchant Discount Rate charges on select person-to-merchant UPI transactions until after Diwali. The UPI and Services Steering Committee decided on October 13, 2026 to implement MDR immediately after Diwali, with a revised date to be notified. Payment firms that had started merchant outreach said the pause created confusion. Industry voices expect another steering meeting in early November.
Prism
What It Means For You
- The deferment covers select person-to-merchant UPI transactions until after Diwali.
- Airpay founder Kunal Jhunjhunwala said steady costs help merchants serve customers.
- He said keeping low-value payments and the smallest merchants outside the charge protects everyday UPI use.
What's Happening
- Industry sources said the move postpones rather than cancels the MDR framework.
- A payments company source said outreach already underway was creating more confusion.
- A founder said the steering committee may meet again in the first week of November.
What Merchants Get For Now
- BusinessLine and Livemint reported the Diwali deferment on October 13, 2026.
- MDR here refers to charges on select UPI person-to-merchant transactions.
- NPCI will notify the revised implementation date separately.
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