UPI MDR Rollout Deferred Until After Diwali
What Happened
On October 13, 2026, the National Payments Corporation of India (NPCI) announced that the rollout of Merchant Discount Rate (MDR) on UPI transactions above ₹2,000 has been deferred until after Diwali. The decision follows consultations with banks, payment firms, and the Reserve Bank of India (RBI). NPCI clarified that the delay is intended to ensure smoother implementation and avoid disruption during the festive season.
Key Takeaways
The deferment provides temporary relief to merchants and consumers during peak festive spending, but MDR charges on high-value UPI transactions remain inevitable, signaling a shift in India’s digital payments cost structure.