UPI MDR Rollout May Be Delayed Until January

The implementation of the new 0.4% Merchant Discount Rate (MDR) on certain UPI transactions may be delayed until January 2027, amid concerns raised by merchants over the timing of the rollout during the festive season.

The National Payments Corporation of India (NPCI) had announced that a 0.4% MDR would apply to person-to-merchant UPI transactions above ₹2,000 from October 15, 2026.

The charge would be borne by merchants, while transactions of ₹2,000 or below and person-to-person payments would remain outside the MDR framework.

However, with the festive season underway, the government is considering postponing the implementation to January 1, 2027 to provide merchants and the wider digital-payment ecosystem more time to prepare. A final decision is yet to be formally announced.