CONNECT WITH US
Fintech

Fintech

Will UPI MDR rollout be deferred to January 2027?

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Will UPI MDR rollout be deferred to January 2027?

The proposed deferment is being considered ahead of the festive season, when UPI transactions typically surge. Merchant associations, fintech companies and payment firms have sought more time to prepare for the new regime

UPI MDR rollout may be deferred from October 15 to January 1, 2027, with a final decision by NPCI still pending. The proposed 0.4 per cent MDR will apply to eligible P2M transactions above Rs2,000, with a Rs300 cap for transactions of Rs75,000 and above. The exemption for small merchants could be widened from monthly turnover of Rs1 lakh to annual turnover of Rs40 lakh. Paytm, MobiKwik and Pine Labs shares fell after reports of the possible delay, as investors reassessed the timing of the new revenue stream.

The rollout of the new merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions is likely to be deferred from October 15 to January 1, 2027, providing merchants and the payments ecosystem more time before the new fee structure takes effect. The proposed deferment is being considered ahead of the festive season, when UPI transactions typically surge. Merchant associations, fintech companies and payment firms have sought more time to prepare for the new regime, with discussions taking place between the National Payments Corporation of India ( NPCI ) and the Finance Ministry, according to reports. The UPI Steering Committee has also discussed the timing of the rollout. Advt

A final decision is yet to be formally announced, but the proposed January 1 date has emerged as the likely new implementation date.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.