Implementation of UPI MDR on Merchant Transactions Postponed

Mumbai, October 13, 2026: In view of the upcoming festive season, it has been decided to postpone the UPI MDR on merchant transactions till after Diwali.

The UPI Services and Steering Committee decided on October 13, that keeping in mind the upcoming festive season, the implementation of Merchant Discount Rate (MDR) on certain Person to Merchant (P2M) has been postponed till after Diwali.

The date of implementation of MDR post Diwali has not been decided yet and shall be communicated separately.

About UPI MDR

Earlier in mid-September, NCPL had announced that the MDR on P2M transactions above Rs. 2000 will attract a 0.4% MDR, to be paid by the merchant, not the consumer.

Small merchants receiving payments under Rs. 1 lakh in a month will not be charged any MDR.

Essential services like insurance will be charged flat Rs. 5 above transactions of Rs. 2000.

The implementation of UPI MDR had drawn mixed reactions from the citizens with most favoring to keep UPI free for forever.