Neutral impactEconomy
UPI MDR fee: Why did the govt decide to implement charges after Diwali 2026? Read on to know more
Mint 1 hr ago·13 Oct 2026, 9:12 am
The National Payments Corporation of India (NPCI) has postponed the introduction of Merchant Discount Rate (MDR) charges on person-to-merchant UPI transactions. This decision was made to avoid disrupting the festive season, with the charges now expected to be implemented after Diwali in 2026. The exact date has not been finalized yet, but the move ensures that digital payments remain smooth and accessible for consumers during the upcoming celebrations.
This delay is significant for investors as it maintains the current low-cost digital payment ecosystem. By deferring the charges, the government and NPCI aim to support small merchants and encourage continued usage of UPI. Investors should monitor the timeline for the final implementation, as any changes could impact the profitability of payment aggregators and fintech companies in the long run.
Excerpt from Mint
UPI MDR fee update: NPCI has deferred the implementation of Merchant Discount Rate (MDR) charges on select person-to-merchant (P2M) UPI transactions until after Diwali 2026. The exact date is yet to be announced. The deferment does not mean the proposed charges have been cancelled. The Merchant Discount Rate (MDR) on…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
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