No MDR On UPI Payments Over ₹2,000 Until After Diwali, NPCI Drops October 15 Plan

The NPCI has deferred the proposed merchant discount rate (MDR) on select UPI transactions until immediately after Diwali, citing the festive season. The rollout, originally scheduled for October 15, will now take place on a revised date to be announced separately. Under the framework approved on September 15, eligible person-to-merchant UPI transactions above Rs 2,000 would attract a 0.4% charge, capped at Rs 300 for transactions of Rs 75,000 and above. Payments up to Rs 2,000 and eligible small merchants would remain free, with around 96% of P2M transactions expected to remain unaffected. The deferment follows concerns from trade bodies about higher merchant costs and potential pressure on festive sales and consumption.