UPI MDR rollout may be deferred to January 2027 amid retailer pushback

India's planned merchant discount rate on select UPI transactions may be pushed from October 15 to January 1, 2027, following opposition from retail associations. An exemption for businesses with annual turnover up to ₹40 Lakh is also under consideration; the 0.40% fee applies to payments above ₹2,000, capped at ₹300.

• 0.40% MDR on P2M UPI payments above ₹2,000, capped at ₹300 per transaction
• Consumers exempt from the fee; ₹2,000 threshold expected to stay
• Exemption for businesses with turnover up to ₹40 Lakh under review
• UPI processed 24.07 Bn transactions worth ₹29.37 Tn in September