On this page

Earlier report,

NPCI defers UPI MDR rollout, due 15 October, to after Diwali; new date to be notified separately

Since then, : NPCI defers UPI MDR past Diwali; 1 January 2027 start reported as possible

Our read

NPCI will more likely than not start the 0.4% UPI MDR on select P2M payments above ₹2,000 soon after Diwali, with a real risk of further changes.

For operators

The 0.4% MDR on select P2M UPI payments above ₹2,000 will not start on 15 October and will follow immediately after Diwali, so you get the festive peak without the charge, but you should model your cost by category and ticket size before NPCI notifies the date.

Watch

NPCI notifying the start date for the 0.4% MDR before Diwali would mean rollout stays immediate, leaving small merchants and PSPs little time to reprice.

Ask next

The report

NPCI's UPI and Services Steering Committee chose the delay with the festive season in mind, before a 0.4% MDR applies to select P2M transactions above ₹2,000. The fee is subject to specified caps and category-based rates.

Deferral announcement set against the original rollout date
  1. 13 OctoberNPCI announces deferral of UPI MDR rollout
  2. 15 OctoberOriginal MDR rollout date: 0.4% on select P2M above ₹2,000

What we verified

Checked against the other reports of this story.

Why it matters to operators

Use the deferral from 15 October to test deal and partnership cases against a 0.4% MDR on UPI payments above ₹2,000, especially for targets with a large share of high-ticket UPI sales, and refresh the numbers when NPCI announces the date and category rates.

What to watch next

  • Whether the ₹2,000 threshold or the 0.4% rate changes in the final circular
  • Statements from large merchants or PSPs on absorbing versus passing on the charge
  • Any RBI or Finance Ministry comment on charging for UPI merchant payments
  • Merchant moves to nudge customers to cards or cash on tickets above ₹2,000

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • NPCI is likely to issue a separate circular with the start date, and to restate the caps and category-based rates in it.
  • Large merchants and retail chains are likely to lobby for category relief on payments above ₹2,000 while the delay lasts.
  • Payment aggregators and PSPs may use the extra time to rework merchant pricing and settlement systems before the 0.4% charge starts.
  • Banks that acquire merchants are likely to press for clarity on how the MDR will be shared across the UPI chain.
  • Retailers may hold off on surcharges or card-nudging until the final date and rates are notified.

Updates

Each later report on this story, newest first. Earlier entries are never edited; a correction is a new entry.

  1. Read the update at Financial Express

    NPCI defers UPI MDR past Diwali; 1 January 2027 start reported as possible

    • Cap per transaction: Rs 300
    • Flat fee for railways, telecom, insurance and fuel: Rs 5
    • Capital market payments MDR: 0.02%
    • Small merchant monthly UPI QR exemption: up to Rs 1 lakh
    • Merchant transactions unaffected: 96%

  2. Read the update at CNBC-TV18

    UPI MDR deferred till after Diwali, not dropped: ex-SBI chief Khara reads it as clear intent to proceed

On the record

Earlier NPCI reports on RetailIntel, newest first.

  1. : UPI MDR deferral to January 2027 sought; MobiKwik, Paytm, Pine Labs shares slide up to 7%

Reported figures

From the report. Source details below

Deferral announced on: 13 October

The source

Source Read the source at CNBC-TV18

Filed

Also reported by Moneycontrol, Hindustan Times, Business Today, NDTV Profit, Indian Express, News18, Free Press Journal Business, Inc42, Mint, Times of India, Times Now Business, Entrackr, The Hindu BusinessLine, Outlook Business, ET Small Business, Financial Express, The New Indian Express Business, BW Disrupt, Deccan Herald Business, Medianama

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Note Information, not investment advice. RetailIntel is not registered with SEBI.