UPI MDR Charges From October 15 May Face A Surprise Twist, Will Government Delay New Payment Rules Until January 2027?
Mumbai: The government's plan to introduce Merchant Discount Rate (MDR) charges on Unified Payments Interface (UPI) transactions above Rs 2,000 could face a delay, with implementation potentially shifting from October 15, 2026, to January 2027. According to a Reuters report citing regulatory and industry sources, the government is considering postponing the rollout to avoid disruptions during the…
Mumbai: The Indian government's proposal to introduce a Merchant Discount Rate (MDR) charge on UPI transactions over Rs 2,000 may face a delay, potentially moving the implementation from October 15, 2026, to January 2027. According to Reuters, regulatory and industry sources suggest the government is considering the postponement to prevent disruptions during the festive shopping season and provide payment companies with more time to prepare.
However, no official confirmation of the delay has been released. The proposed MDR is set at 0.4 percent, with a cap of Rs 300 on transactions exceeding Rs 75,000. Nevertheless, person-to-person UPI transfers will remain free, as will payments under Rs 2,000. The Reserve Bank of India has stated that the MDR charge is unlikely to have a significant impact on UPI transaction volumes.
If delayed, this change could affect the anticipated earnings of digital payment companies, as investors had anticipated revenue growth from the new payment charge.
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