Decision to Impose MDR on UPI Transactions Deferred Until Diwali; Relief for Digital Payment Users

Decision to Impose MDR on UPI Transactions Deferred Until Diwali; Relief for Digital Payment Users

Desk: The NPCI has deferred the proposal to levy a Merchant Discount Rate (MDR) on UPI transactions until after Diwali. The proposal was slated to take effect on October 15, 2026, and involved imposing charges on certain UPI payments exceeding ₹2,000. This deferral brings relief to shopkeepers and digital payment users during the festive season. However, political rhetoric surrounding the issue has intensified; the BJP has accused the Congress of spreading misinformation, while the opposition is questioning the government’s decision. All eyes are now on the next decision to be taken after Diwali.