Wire · operational-macro
UPI Payment Charges For Merchants Post Diwali
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Fusion42 · 13 October 2026 · Fusion42 review
The Indian government will impose a 0.4% Merchant Discount Rate (MDR) on select UPI person-to-merchant transactions immediately after Diwali, delaying the original 15 October start date to avoid pressure on merchants during the festive season. The MDR fee will be capped at ₹300 per transaction for amounts ₹75,000 and above and is charged to merchants, not consumers.
This Wire brief sits within Fusion42's coverage of Fintech, and 45 sources have reported it between 19 Jul 2026 and 15 Oct 2026.
◆ ◆ The Wire takeaway
You face a new cost layer as merchants must pay a capped fee on UPI transactions after Diwali, pressuring pricing if you serve small retailers in India. This shift opens an urgent need to adjust your go-to-market and payment support strategies for merchant clients.
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45 sources · first reported 19 Jul 2026 · latest 15 Oct 2026
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