Merchant fee on Rs 2,000-plus UPI payments to be imposed after Diwali

On Tuesday, October 13, 2026, the National Payments Corporation of India (NPCI) announced that the proposed Merchant Discount Rate (MDR) on person-to-merchant UPI payments would be implemented after Diwali. This decision was made by the UPI and Services Steering Committee during their meeting on October 13, 2026, keeping in mind the festive season. NPCI stated that the MDR on select Person-to-Merchant (P2M) UPI transactions will be implemented immediately on a date to be notified separately after Diwali.

Earlier, Reserve Bank of India Governor Sanjay Malhotra had expressed his opinion on the matter. On October 7, 2026, he said that levying a "small fee" in the form of merchant discount rate (MDR) would not have a "major impact" on UPI transaction volumes. Speaking to reporters at the central bank headquarters in Mumbai, Malhotra assured that "as of now, we do not see any drop in volumes" and personally believed that "a small fee will have a major impact on the volumes."