UPI Users Breathe Easy as Merchant Discount Rate Implementation Delayed

Delay in Merchant Discount Rate for UPI Transactions

New Delhi: UPI users have received good news as the implementation of a Merchant Discount Rate (MDR) of 0.4% on transactions exceeding Rs 2,000 has been postponed. The National Payments Corporation of India (NPCI) announced on Tuesday that a new date for this policy will be determined after the Diwali festivities.

Last month, NPCI had issued a circular indicating that the 0.4% MDR would apply to Person-to-Merchant UPI payments over Rs 2,000 starting October 15.

In a statement released on Tuesday, NPCI mentioned, "The UPI and Services Steering Committee has decided to delay the implementation of the Merchant Discount Rate on specific Person-to-Merchant (P2M) UPI transactions until after Diwali, with a date to be announced later."

It's important to note that the MDR is the responsibility of merchants, not consumers, and is capped at Rs 300 for transactions of Rs 75,000 or more.