UPI Charges Postponed Until After Diwali; NPCI Defers 0.4% Merchant Fee

UPI Charges Postponed Until After Diwali; NPCI Defers 0.4% Merchant Fee
New Delhi, October 13: The National Payments Corporation of India (NPCI) has postponed the implementation of Merchant Discount Rate (MDR) charges on selected UPI transactions until after Diwali, providing relief to businesses during the festive shopping season.
The proposed 0.4% fee on eligible merchant transactions exceeding ₹2,000 was originally scheduled to take effect on October 15, 2026. The charge will be capped at ₹300 per transaction.
NPCI said the decision was taken considering the festive season and concerns raised by merchant associations and payment service providers.
Person-to-person UPI transfers, payments up to ₹2,000 and qualifying small-merchant transactions will remain free. The proposed MDR is payable by merchants and is not intended as an additional charge on customers.
A revised implementation date will be announced separately.
[UPI MDR Charges, NPCI Announcement, UPI Transaction Fees, Digital Payments India, Diwali 2026, Merchant Discount Rate]
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