MDR on UPI may now take effect in January 2027

MUMBAI: The rollout of merchant discount rate (MDR) on select UPI transactions is expected to be postponed to Jan 2027 against the earlier date of Oct 15 with an announcement expected over the next couple of days. The move follows representations from trade bodies which were apprehensive that the introduction of the fees may impact festival season sales at a time when prices are rising.

The rollout of the merchant discount rate on UPI transactions has been postponed to January 2027. This decision follows requests from trade bodies concerned about potential impacts on festival season sales. The new fee structure was originally set to take effect on October 15, giving stakeholders only a month for preparations. The framework includes a 0.4% charge for transactions above Rs 2,000, but many transactions will remain fee-free.

Summarised by Agaah from Times of India Business. Agaah aggregates 36 sources and removes duplicate coverage — all news, one place.