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NPCI defers UPI MDR on select merchant payments until after Diwali; start date to be notified

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NPCI defers UPI MDR on select merchant payments until after Diwali; start date to be notified

NPCI defers UPI MDR on select merchant payments until after Diwali; start date to be notified

The UPI MDR charge was due to start on October 15. NPCI’s steering committee has now pushed it to “immediately post Diwali”, citing the festive season.

The MDR on specified UPI merchant transactions, scheduled to begin on October 15, will now start after Diwali, on a date NPCI will notify separately.

The framework announced in September sets a 0.4% MDR on person-to-merchant payments above ₹2,000, capped at ₹300 for payments of ₹75,000 and above. Person-to-person payments stay free.

The National Payments Corporation of India ( NPCI ) on Tuesday said that it has deferred the merchant discount rate (MDR) on select person-to-merchant (P2M) UPI transactions. In the statement, it said the UPI and Services Steering Committee decided that, keeping the festive season in mind, the charge will be implemented immediately after Diwali, on a date to be notified separately. NPCI issued a policy circular on September 15, a day after a Ministry of Finance Gazette notification, setting a 0.4 per cent MDR on P2M UPI transactions above Rs 2,000. Payments of Rs 75,000 and above carry a flat Rs 300 cap. Advt

Railways, telecom, insurance, fuel and agricultural inputs pay a flat Rs 5 per transaction above Rs 2,000. Payments into mutual funds, securities and through stockbrokers and dealers attract 0.02 per cent , also capped at Rs 300.

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