NPCI

UPI MDR fee update: NPCI has deferred the implementation of Merchant Discount Rate (MDR) charges on select person-to-merchant (P2M) UPI transactions until after Diwali 2026. The exact date is yet to be announced. The deferment does not mean the proposed charges have been cancelled.

The NPCI has deferred UPI MDR till Diwali 2026, the NPCI onformed about the decision from its X handle on Tuesday

The decision comes just two days before the proposed implementation of the revised MDR framework on 15 October, providing additional time for banks, payment service providers and merchants to prepare for the new charging structure.

The proposed UPI MDR framework sets charges for certain merchant payments above ₹2,000. Here's whether consumer prices at stores will rise if merchants start paying a nominal fee.

Swift's 15-member board will oversee strategy, management, risk and controls under a revised governance structure approved by shareholders.

UPI MDR will apply to eligible P2M transactions above ₹2,000 from 15 October 2026. But how does its 0.4% charge compare with typical debit and credit card MDRs? Here’s a look at the transaction costs and how the charges differ across payment modes.

A survey of over 67,000 UPI users suggests 76% may shift to cards, cash, or bank transfers for purchases above ₹2,000 if merchants pass on the proposed 0.4% MDR. However, UPI transaction value could fall 10% after the MDR rollout from 15 October, as consumers consider other payment modes.

From October 15, a new MDR framework will apply to UPI merchant payments above ₹2,000. But not all merchants or transactions will be affected. Here’s what the new rules mean for customers, small vendors and select sectors.

NSE CEO Ashish Chauhan stated there have been no talks with the government regarding the new Merchant Discount Rate for UPI payments, which he claims is a matter for brokers and clients to resolve. The new MDR framework takes effect on October 15, impacting capital-market transactions.

The NPCI is unlikely to modify the reintroduced MDR charges on UPI transactions, emphasizing the need for investment in technology and security. Despite concerns over costs potentially affecting customers, Asbe believes transaction volumes could grow as industry reinvests in the ecosystem.