4 hrs ago
Sitharaman Says Stakeholders Will Decide UPI MDR Deferment
A new fee is being planned for some payments made by businesses through UPI.
The fee is called the Merchant Discount Rate, or MDR.
It would be 0.4% for certain merchant payments above Rs 2,000.
Payments between people would not have this fee.
Merchant payments of Rs 2,000 or less would also be excluded.
The charge is currently scheduled to start on October 15.
Some businesses and payment companies have reportedly asked for more time.
Nirmala Sitharaman said the people and organizations in the payments system will decide whether to delay it.
Reports say a delay until January 2027 is possible, but it has not been confirmed.
Finance Minister Nirmala Sitharaman said payments-system stakeholders will decide whether the proposed UPI MDR rollout is deferred.
The proposed Merchant Discount Rate is 0.4% on specified merchant transactions above Rs 2,000.
Person-to-person UPI payments and merchant transactions of Rs 2,000 or less are excluded from the proposed charge.
The rollout is scheduled for October 15, though reports suggest it could be postponed to January 2027.
Merchant groups, fintech companies and payment firms have reportedly sought more time from the National Payments Corporation of India.
- Who
- Union Finance Minister Nirmala Sitharaman and stakeholders in the payments ecosystem.
- What
- Stakeholders will decide whether to defer the proposed 0.4% MDR on specified UPI merchant transactions above Rs 2,000.
- Where
- India.
- When
- Sitharaman made the statement on October 8, 2026; the charge is scheduled to begin October 15, with a possible postponement to January 2027 reported.
- Why
- Merchant groups, fintech companies and payment firms have reportedly sought more time before the proposed charges are introduced.
Key facts
- Proposed MDR
- 0.4%
- Transaction threshold
- Specified merchant transactions above Rs 2,000
- Excluded transactions
- Person-to-person UPI payments and merchant transactions up to Rs 2,000
- Scheduled start date
- October 15, 2026
- Possible revised date
- January 2027, according to reports; deferment has not been confirmed
- Decision-maker on deferment
- Stakeholders in the payments ecosystem
- Reported requesters for more time
- Merchant groups, fintech companies and payment firms
Quotes
Nirmala Sitharaman
Union Finance Minister of India
“Deferment of MDR will be handled by the stakeholders. It’s on them to decide from when MDR will be levied on UPI transactions.”
news18.com
Sources
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