UPI MDR Charges Delayed Until After Diwali

The implementation of Merchant Discount Rate (MDR) charges on select UPI merchant transactions has been postponed until after Diwali, following requests from traders. The NPCI announced the decision on October 13, replacing the earlier October 15 rollout date.

Under the proposed rules, transactions above ₹2,000 will attract an MDR of 0.4% in applicable categories, while select sectors such as railways, telecom, insurance and fuel will face a flat ₹5 charge. The fees will be paid by merchants, not consumers. The revised implementation date will be announced later.