BusinessUPI MDR Rollout May Be Deferred to January 2027
The rollout of merchant discount rate (MDR) on certain UPI transactions may be delayed until January 2027. Merchant groups, fintech firms, and payment companies have requested more time to prepare, citing confusion over MDR rates and transaction categories. The National Payments Corporation of India (NPCI) is reviewing the request and consulting the Finance Ministry. The MDR changes were initially set for October 15, 2026, with a rate of 0.4% on transactions above Rs 2,000.
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