NPCI Defers UPI Merchant Discount Rate Rollout Until After Diwali
· Business · LiveMint, Zee News, The Hindu
The National Payments Corporation of India has postponed the implementation of the revised merchant discount rate (MDR) framework for UPI transactions until after the Diwali festival. NPCI managing director Dilip Asbe confirmed the delay, noting that a new date will be announced shortly. The decision follows concerns from trade bodies that the charges could negatively impact consumer spending during the peak festive season. The proposed framework, announced in September, intended to levy a 0.4% charge on person-to-merchant UPI transactions exceeding ₹2,000. Small merchants with monthly transactions under ₹1 lakh remain exempt from the proposed charges.
Why it matters
The deferral prevents a potential disruption to digital payment adoption among small merchants and consumers during India's most significant shopping period.
Read the original report — LiveMint
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