NEW DELHI, OCT 13: The implementation of the proposed Merchant Discount Rate on select high-value person-to-merchant UPI transactions has been deferred until after Diwali, following decision-making by payment governance bodies.
NPCI officials affirmed that the new schedule will be announced in due course, extending the current zero-MDR framework temporarily. Authorities asserted that the postponement provides relief to merchants processing festive purchases across commercial sectors.
Under the announced guidelines, person-to-person payments and merchant transactions below two thousand rupees will remain unaffected by any charges.
Ministry officials declared that transactions exceeding the threshold will attract a baseline fee capped at reasonable limits to keep digital processing affordable compared to traditional payment methods. Officials maintained that the measure is intended to ensure long-term sustainability and cybersecurity for digital financial networks without overburdening smaller enterprises.
Government sources stated that the temporary delay addresses concerns raised by trade associations and commercial bodies ahead of the major shopping period. Financial experts asserted that the deferred rollout will allow banking systems and payment service providers additional time to streamline backend mechanisms. Authorities declared that comprehensive operational guidelines and exact dates will be communicated to all participating institutions following the conclusion of the festive period.
