Wire · operational-macro
NPCI defers MDR on select UPI merchant transactions post Diwali
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Fusion42 · 13 October 2026 · Fusion42 review
The National Payments Corporation of India (NPCI) has postponed the implementation of Merchant Discount Rate (MDR) fees on select UPI Person-to-Merchant transactions until after the Diwali festival, with a new date to be announced later. Under the planned framework, MDR applies only to certain transactions above Rs 2,000, with most small merchants and Person-to-Person transactions remaining free.
This Wire brief sits within Fusion42's coverage of Fintech, and 44 sources have reported it between 15 Sep 2026 and 17 Oct 2026.
◆ ◆ The Wire takeaway
You face a delayed fee rollout on UPI merchant payments that preserves existing free payment frameworks through Diwali, creating a short window to adjust customer messaging and payment strategies. This delay lets you prepare for the new charges targeting larger transactions without immediate impact on small merchants or person-to-person transfers.
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44 sources · first reported 15 Sep 2026 · latest 17 Oct 2026
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