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Earlier report,
UPI MDR rollout may slip from 15 October to 1 January 2027 after retailer pushback
Our read
Plan for both dates but don't change checkout or pricing yet: model the proposed 0.40% MDR (capped at ₹300) on UPI payments above ₹2,000, and check whether your turnover falls under the ₹40 lakh exemption being considered, since the 15 October start may slip to 1 January 2027.
Watch
An official notification or circular fixing the effective date as 15 October or 1 January 2027
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The report
UPI's merchant discount rate rollout may be deferred from October 15 to January 1, 2027, amid retailer pushback. The proposed 0.40% fee applies to eligible P2M transactions above ₹2,000, and a turnover exemption of up to ₹40 Lakh is under consideration.
- Estimated annual cost to FMCG distribution and retail
- ₹7,000 crore–₹9,000 crore
- MDR on eligible P2M UPI transactions above ₹2,000
- 0.40%
- MDR cap per transaction
- ₹300
- Possible exemption for annual turnover up to
- ₹40 Lakh
Newer report adds to this story , : IIT-Bombay report proposes a 0.08% MDR instead of 0.40%.
What we verified
Checked against the other reports of this story.
- Scheduled MDR start date: October 15 — Inc42 and Moneycontrol agree.
- MDR cap for payments of ₹75,000 and above: ₹300 — Inc42 and Mint agree.
Why it matters to operators
Run retail and distribution target valuations under four cases (15 October or 1 January 2027, with or without the ₹40 lakh turnover exemption), because the proposed 0.40% MDR could change payment-cost assumptions for larger merchants.
Updates
Each later report on this story, newest first. Earlier entries are never edited; a correction is a new entry.
NPCI: 0.4% UPI MDR above ₹2,000 need not lift shelf prices; rollout may slip from 15 October to 1 January 2027
- MDR on capital-market UPI payments: 0.02%
- UPI consumers: more than 500 million
Sitharaman: stakeholders to decide when 0.4% UPI MDR starts, as 15 October rollout may slip to January 2027
Reported figures
From the report. Source details below
| MDR cap per transaction: | ₹300 |
|---|---|
| Flat fee for specified categories above ₹2,000: | ₹5 |
| Estimated annual cost to FMCG distribution and retail: | ₹7,000 Cr–₹9,000 Cr |
| Merchant transactions unaffected per Centre: | 96% |
The source
Filed
Confirmed by Times Now Business, BW Disrupt, Indian Express, Moneycontrol, The Hindu BusinessLine, Times of India, Outlook Business, Mint
First seen