Now, MDR on UPI to be rolled out after Diwali
The National Payments Corporation of India has deferred the implementation of a merchant discount rate on UPI transactions until after the Diwali festival. This decision provides relief to retailers who were concerned about the operational challenges of updating billing systems during the peak shopping season.
Why it matters
The delay impacts the profitability of digital payment providers and the operational costs for millions of small and large retailers across India during the country's most significant retail period.
MUMBAI: Amid pushback from industry, National Payments Corporation of India (NPCI) has deferred the rollout of merchant discount rate (MDR) on select UPI transactions until after Diwali. In a statement on Tuesday, NPCI said that a new date of implementation will be notified separately. The merchant fee was earlier supposed to come into effect from Oct 15, amid the peak Navratri season when festive sales volumes surge.Retailers heaved a sigh of relief as the move will spare them the need to reconfigure billing and accounting systems, besides briefing store staff at the point of peak footfalls."Deferment avoids this and gives the trade time to prepare.....the festive quarter is the single most important trading window for apparel retail.
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