Industry Odisha Bureau, Oct 08: In latest news, the rollout of Merchant Discount Rate (MDR) on select UPI transactions from October 15 is likely to be delayed by a few months, according to reports. A final decision on the same is expected in the next few days.
Sources say that requests have been made to the National Payments Corporation of India (NPCI) and the Finance Ministry to push the rollout to January 2027.
The proposed MDR has faced concerns from traders and industry associations, particularly over its timing during the festive sales season. Merchant bodies have said the charge could increase transaction costs for businesses. Especially small retailers and micro, small and medium enterprises (MSMEs).
Industry groups have also sought changes to the proposed system. These include a higher exemption threshold and a phased rollout of the MDR.
The issue was recently discussed by the UPI Steering Committee. Therein, concerns raised by industry groups were also considered, sources said. NPCI is expected to take a decision on the deferment in the next few days, while discussions with the Finance Ministry are continuing.
The MDR was originally scheduled to come into effect from October 15. Under the proposed structure, a 0.4% MDR would apply to person-to-merchant (P2M) UPI transactions above Rs 2,000.
The charge would be capped at Rs 300 for transactions of Rs 75,000 and above. A flat Rs 5 MDR would apply to select categories of transactions.
