UPI MDR rollout postponed until after Diwali; new date to be announced
BusinessLine 1 hr ago·13 Oct 2026, 12:50 pm
The government has postponed the rollout of the revised Merchant Discount Rate (MDR) for UPI transactions until after Diwali. This decision comes after significant opposition from the fintech sector and a legal challenge, with the Supreme Court asking the National Payments Corporation of India (NPCI), the Reserve Bank of India (RBI), and the Centre to explain the move. The new date for implementation will be announced later.
This delay is a major relief for the digital payments industry, which had warned that the new fee structure could hurt small merchants and drive customers toward cash. For investors, this pause provides a temporary window for the sector to adjust to the regulatory environment. The focus will now shift to the government's next steps and the Supreme Court's response to the legal challenge.
Moving forward, investors should watch for the official announcement of the new implementation date. The market will also be closely monitoring how the Supreme Court proceeds with its query, as a favorable ruling for the government could trigger a fresh wave of volatility in the fintech and banking sectors.
Excerpt from BusinessLine
The National Payments Corporation of India (NPCI) has deferred the rollout of the merchant discount rate (MDR) on high-value UPI transactions until after Diwali, according to a statement issued on October 13. The levy was initially scheduled to come into effect on October 15. NPCI defers MDR rollout until after Diwali…Read the original at BusinessLine
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- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
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