New UPI MDR Charges Implementation Date: How long will transactions above ₹2,000 remain free? What we know from the NPCI statement | Today’s news
UPI and Services Steering Committee took a key decision today. On October 13, she remembered the festive period when deciding on the introduction of the business discount rate (MDR).
The MDR was supposed to be implemented from 15 October. It will be applicable on select Person-to-Merchant (P2M) UPI transactions. However, the date of its introduction is being postponed, the National Payments Corporation of India (NPCI) informed on Tuesday.
“The UPI and Services Steering Committee today decided that in view of the festive season, the Merchant Discount Rate (MDR) on selected merchant-to-merchant (P2M) UPI transactions will be implemented immediately after Diwali on a date to be announced separately,” NPCI said in a statement.
The MDR charges will now be introduced immediately after Diwali. The exact date will be announced separately.
Diwali 2026 will be celebrated on November 8. If the promise of “immediate” implementation remains true, the MDR charges are likely to start on November 9. This means that for the next 20 days, UPI transactions will be higher ₹2000 will remain free as usual.
Consumer spending during the holiday season
The festive shopping season in India runs from October to December. Consumer spending rises during this period, with Diwali marking the peak.
Shoppers spend on products including cars, clothes and home appliances. An earlier implementation date would place the fee into this shopping season.
Over 500 million people use UPI for purchases ranging from toffees to laptops. Together, PhonePe and Google Pay held approximately 80% of transaction value in August. PhonePe is owned by Walmart, while Google Pay is owned by Alphabet.
Reuters reported that the delay could help payment firms upgrade systems and avoid charging customers. His report cited sources and mentioned the retailers’ festive difficulties.
The Confederation of All India Traders (CAIT) welcomed the reprieve and thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.
According to CAIT, the decision is “timely and pragmatic”. This is the period when millions of SMEs and merchants expect higher business volumes.
Deferral of MDR fees brings relief to them. Any trader who sells on a low margin benefits from this.
CAIT General Secretary Praveen Khandelwal said, “CAIT supports digital payments. However, the system must remain accessible and sustainable for merchants, especially small businesses.”
“This reprieve will boost the confidence of traders and strengthen the government’s partnership with the business community in building a stronger digital India,” added the BJP MP from Chandni Chowk.
