UPI Charges Latest News: NPCI has put off the introduction of Merchant Discount Rate (MDR) on certain transactions made using the Unified Payment Interface (UPI). The move came out on Tuesday, October 13, 2026, considering the upcoming festive season.
According to NPCI, the UPI and Services Steering Committee resolved to postpone the introduction of MDR on select P2M UPI transactions. The revised date for implementation will be announced separately. Charges were earlier supposed to take effect on October 15, 2026. The postponement is temporary in nature since the framework is not canceled. It is yet to be seen when the new date will be announced by NPCI.
UPI MDR Latest News: When Will Merchant Charges Begin?
According to NPCI, the MDR for selected P2M UPI transactions will be rolled out post-Diwali. But there is no particular date mentioned. It appears that the previous deadline of October 15 has been postponed. The new deadline will be shared separately. Till then, merchants should not consider the deadline of October 15 to be the effective one.
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What Is MDR in UPI Payments?
The MDR, which is a charge for digital payments, is a cost borne by the merchant that is split among all the participants who process the transaction according to the respective payment structure.
In the suggested UPI system, an MDR of 0.4 percent would be applied to selected person-to-merchant payments that exceed ₹2,000. The applicable rate is capped at a maximum of ₹300 for payments above ₹75,000. There can be variation in the applicable rate based on the merchant category since there are some categories with their own payment structures.
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