NPCI Delays Select UPI Merchant Fees Until After Diwali

The National Payments Corporation of India (NPCI) has postponed the planned merchant discount rate on select UPI merchant payments until after Diwali, moving the rollout from its scheduled October 15 start. The revised implementation date has not been announced. NPCI said on October 13 that its UPI and Services Steering Committee decided the charges would take effect immediately after Diwali, on a date to be notified separately. The framework remains planned; the committee described a delay rather than a cancellation. Under the announced framework, merchants would pay a standard MDR of 0.4% on eligible person-to-merchant (P2M) UPI transactions above Rs 2,000. For transactions of Rs 75,000 or more, the charge is capped at Rs 300. MDR is a fee for processing payments, and the proposed charge is payable by merchants, not customers. Payments of Rs 2,000 or less and person-to-person transfers are among the transactions reported as exempt under the framework. Some qualifying small merchants would also remain exempt. The exact eligibility rules vary by category, and the October 13 announcement did not provide a revised start date or announce changes to the framework.