NPCI defers 0.4% UPI merchant fee to post-Diwali; new date to be notified separately

The National Payments Corporation of India has deferred the proposed 0.4% merchant discount rate (MDR) on select person-to-merchant (P2M) UPI transactions above ₹2,000. Announced by NPCI's UPI and Services Steering Committee on October 13, the rollout — originally scheduled for October 15 — will now take effect immediately after Diwali on a date to be notified separately. The fee is borne by merchants, not consumers, and is capped at ₹300 per transaction, while person-to-person transfers remain free. The deferral followed representations from merchant bodies, fintechs and payments companies over its festive-season impact. Sources: Kashmir Reader (PTI), The Week, Free Press Journal. (Kashmirreader, Theweek, Freepressjournal)

• The National Payments Corporation of India has deferred the proposed 0.4% merchant discount rate (MDR) on select person-to-merchant (P2M) UPI transactions above ₹2,000.
• Announced by NPCI's UPI and Services Steering Committee on October 13, the rollout — originally scheduled for October 15 — will now take effect immediately after Diwali on a date to be notified separately.
• The fee is borne by merchants, not consumers, and is capped at ₹300 per transaction, while person-to-person transfers remain free.