MDR charges on UPI payments will be implemented post-Diwali, says NPCI
The National Payments Corporation of India (NPCI) announced that the new Merchant Discount Rate (MDR) for UPI payments will be implemented after the Diwali festival. The fee applies to person-to-merchant transactions exceeding ₹2,000.
Why it matters
The introduction of fees on UPI transactions marks a shift in the monetization strategy for India's widely used digital payment infrastructure.
The National Payments Corporation of India (NPCI) announced on Tuesday (October 13, 2026) that the proposed Merchant Discount Rate (MDR) on person-to-merchant UPI payments will be implemented after Diwali.
NPCI said, “UPI and Services Steering Committee on Tuesday (October 13, 2026) decided that, keeping in mind the festive season, the Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions shall be implemented post-Diwali immediately on a date to be notified separately.”
Earlier, Reserve Bank of India Governor Sanjay Malhotra on Wednesday (October 7, 2026) said levying a “small fee” in the form of merchant discount rate (MDR) will not have a “major impact” on UPI transaction volumes.
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