MDR on selected UPI merchant payments above ₹2,000 deferred until after Diwali
The 0.4% MDR planned from October 15 for selected UPI merchant payments above ₹2,000 has been deferred until immediately after Diwali.
AI-generated illustrative image. It does not depict an actual NPCI announcement or a specific transaction. Image: MyNilgiris / OpenAI; no external source image used; unmodified.
Summary: The National Payments Corporation of India (NPCI) has deferred a 0.4% merchant discount rate (MDR) on selected person-to-merchant UPI payments above ₹2,000 until after Diwali.
- The MDR had been scheduled to take effect on October 15, 2026.
- A new implementation date will be announced separately.
- This is a fee on selected merchant UPI payments, not a blanket charge on every UPI user or transaction.
- Diwali will be celebrated on November 8.
Reuters, citing an NPCI statement, reported that the implementation was deferred in view of the festive season. The Times of India and the Tamil edition of The Indian Express independently confirmed both the postponement and the 0.4% rate for eligible merchant payments above ₹2,000.
MDR is normally paid by the merchant. The change should not be interpreted as a direct user fee on all person-to-person UPI transfers. NPCI will notify the exact post-Diwali implementation date separately.
News sources and image disclosure
- Reuters — UPI merchant-fee deferral, October 13, 2026
- The Indian Express Tamil — selected UPI merchant payments above ₹2,000, October 13, 2026
- The Times of India — NPCI decision and separate future implementation date, October 13, 2026
- Representative image: AI-generated illustration showing a generic digital payment, calendar and postponement symbol. It does not depict an actual NPCI announcement or a specific transaction. Image: MyNilgiris / OpenAI; no external source image used; unmodified.
