Wire · operational-macro
NPCI defers levy of merchant charges on UPI transactions
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Fusion42 · 15 October 2026 · Fusion42 review
The National Payments Corporation of India (NPCI) has deferred the introduction of Merchant Discount Rate (MDR) charges on select UPI person-to-merchant transactions until after the Diwali festival, responding to resistance from trade bodies. The MDR, intended to cover infrastructure and cybersecurity costs, will apply post-Diwali at a yet-to-be-announced date and includes exemptions for small merchants and concessional rates for essential sectors.
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 brief window to capitalise on peak festive trading without new UPI charges. Plan merchant onboarding and pricing models with MDR costs in mind after Diwali to avoid sudden margin pressures.
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44 sources · first reported 15 Sep 2026 · latest 17 Oct 2026
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