📷 Image: Wikimedia Commons / upi (openMortal-Sourceforge-project)
Business
UPI MDR Rollout Likely Postponed Until After Festive Season
✍️ India Today
🗓 08 Oct 2026, 05:46 PM
👁 9
India Today reports that the rollout of the new Merchant Discount Rate for UPI transactions may be delayed until after the festive season. The delay could affect merchants anticipating lower transaction costs.
India Today has reported that the planned rollout of the new Merchant Discount Rate (MDR) for UPI transactions may be postponed until after the festive season. The MDR, which determines the fee merchants pay for each UPI payment, is a key component of the digital payments ecosystem.
The new rate was intended to reduce transaction costs for merchants and encourage wider adoption of UPI, especially in the small‑ and medium‑enterprise sector. By delaying the rollout, the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) are likely seeking to ensure a smoother transition and address any regulatory or technical concerns.
UPI usage has surged in recent years, with billions of transactions processed monthly. A change in MDR can have a significant impact on merchant profitability and the overall health of the digital payments market.
Merchants who were preparing for the lower rates may need to adjust their pricing strategies and financial planning. The delay underscores the need for clear communication from regulators to maintain trust in the UPI platform.
The new rate was intended to reduce transaction costs for merchants and encourage wider adoption of UPI, especially in the small‑ and medium‑enterprise sector. By delaying the rollout, the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) are likely seeking to ensure a smoother transition and address any regulatory or technical concerns.
UPI usage has surged in recent years, with billions of transactions processed monthly. A change in MDR can have a significant impact on merchant profitability and the overall health of the digital payments market.
Merchants who were preparing for the lower rates may need to adjust their pricing strategies and financial planning. The delay underscores the need for clear communication from regulators to maintain trust in the UPI platform.