NPCI delays MDR on select P2M UPI until after Diwali
NPCI's plan to start charging a Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions has been put on hold until after Diwali.
The NPCI hit pause because the festive season is peak shopping time, and they don't want anything slowing down purchases right now.
A new launch date will be announced later.
Industry groups oppose 0.4% UPI fee
The delay happened after merchant bodies, fintechs, and payment firms spoke up, worried that adding a 0.4% fee for UPI transactions over ₹2,000 could hurt sales and raise prices, especially with inflation already in the air.
Since UPI is used everywhere from big cities to small villages (unlike card machines), rolling out different fees across sectors isn't simple.
For now, delaying MDR on select Person-to-Merchant (P2M) UPI transactions helps everyone enjoy the festive shopping rush without extra costs.