Implementation of UPI MDR has been delayed till Diwali | Today’s news
The National Payments Corporation of India (NPCI) has postponed the introduction of Merchant Discount Rate (MDR) charges on certain Unified Payments Interface (UPI) transactions until Diwali. The new implementation date will be announced soon, NPCI Managing Director and Managing Director Dilip Asbe told Mint on Tuesday.
“We have delayed the rollout till after Diwali. The final date will be announced soon,” Asbe said.
The decision comes at a time of backlash from trade bodies and fears that the charges could dampen spending over the festive period. On 15 September, the ministry announced the reintroduction of the Merchant Discount Rate (MDR) on select UPI transactions after it was abolished in January 2020.
What it entailed
Under the proposed framework, an MDR of 0.4% was to be levied on eligible merchant-to-merchant (P2M) UPI transactions exceeding ₹2000, with maximum charge ₹300 for transactions amounting to ₹75,000 and above.
Person-to-person (P2P) transactions and merchant payments up to ₹2,000 were to remain exempt. Small merchants with monthly UPI transactions up to ₹1 million was also proposed to be excluded from the charges.
MDR is a fee that merchants pay to banks, card networks and point-of-sale providers for offline transactions and payment gateways for online purchases.
This is a developing story.
