UPI MDR Rollout May Be Delayed to January 2027 Amid Industry Concerns
What Happened
The rollout of the new UPI merchant discount rate (MDR) framework may be postponed from October 15, 2026, to January 1, 2027, as merchants, fintech firms and payment companies seek more time to prepare and resolve concerns around transaction classifications and fees. The proposed 0.4% MDR on eligible merchant UPI payments above ₹2,000 remains unchanged, but a final decision on the deferment is still pending.
Key Takeaways
The likely deferment would give businesses more time to prepare during the festive season while delaying the introduction of MDR charges on eligible UPI merchant transactions. A final decision is yet to be announced.