WORLD · VERIFIED DEVELOPMENT
India Delays UPI Merchant Discount Rate Implementation to Post‑Diwali
WHY IT MATTERS
The postponement helps avoid transaction glitches during a critical shopping season, ensuring smoother payments for consumers and merchants while giving firms time to adapt to the new fee regime.
What happened
The Indian government has postponed the launch of the Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions that were set to begin on October 15. The new start date will be after the Diwali holiday.
The decision aims to prevent payment disruptions during the country’s peak festive shopping period, giving payment companies extra time to prepare for the upcoming fee structure.
The MDR is expected to create new revenue streams for UPI operators, but the delay allows them to fine‑tune systems and processes before the change takes effect.
PRIMARY SOURCES
MDR on UPI transactions over Rs 2,000 deferred; to come into effect post Diwali
The Times of India · MAYUR SHETTY · Discovery only; publisher copyright terms apply
CORRECTIONS & UPDATES
- Revision 1 · Initial ingestion · Oct 13, 2026, 10:15 AM
- Revision 2 · Source update detected · Oct 13, 2026, 10:15 AM