NPCI defers UPI MDR rollout until after Diwali

NPCI has postponed the introduction of merchant discount rate (MDR) on select UPI transactions until after Diwali; it was originally set to take effect on October 15. The 0.4% fee applies to eligible P2M transfers above Rs 2,000, capped at Rs 300.

• 0.4% MDR applies to eligible P2M UPI transactions above Rs 2,000
• Fee capped at Rs 300 for transactions of Rs 75,000 and above
• Specified sectors such as railways and telecom face a flat Rs 5 MDR
• P2P transfers and merchant payments up to Rs 2,000 remain free