UPI Charges Delayed To Ensure Uninterrupted Festive Shopping

Article by Kumar Published on: 2:38 pm, 13 October 2026

The National Payments Corporation of India (NPCI) has postponed the implementation of Merchant Discount Rate (MDR) charges on select UPI transactions until after Diwali. The decision was announced on October 13, following concerns over the festive season and operational challenges.

The new charges were initially scheduled to come into effect on October 15. However, the UPI Steering Committee decided to delay the rollout to avoid disruptions during the busy festive shopping period.

Under the proposed framework, a 0.4% MDR will apply to eligible merchant transactions above ₹2,000. The fee is intended to support banks, payment service providers and digital payment platforms.

However, the charges will not apply to all UPI transactions. Person to person transfers will remain free, while payments to merchants up to ₹2,000 and eligible small merchant transactions will continue under the zero MDR framework.

MDR is a fee paid by merchants for processing digital payments. The proposed framework has raised concerns among merchant groups and payment companies over operational costs and the possibility of additional pressure on businesses.

NPCI has said the new implementation date will be announced separately. For now, the rollout has been pushed beyond Diwali, and the revised timeline is awaited.