NPCI defers UPI MDR implementation until Post-Diwali

NPCI Defers UPI MDR Implementation on Select Merchant Transactions Until Post-Diwali

Mumbai, October 13, 2026 — In a major decision ahead of the peak festive season, the UPI and Services Steering Committee has announced that the implementation of the Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions will take effect only after Diwali.

The exact date of implementation will be announced through an official notification at a later stage.

Key Takeaways for Businesses & Stakeholders

Festive Season Relief: By delaying the rollout until post-Diwali, payment networks ensure seamless transactions and liquidity for retail merchants during one of the highest volume shopping periods of the year.
Select P2M Transactions Covered: The upcoming MDR framework will apply specifically to designated Person-to-Merchant (P2M) transactions, rather than personal peer-to-peer transfers.
Implementation Schedule: Further operational guidelines and the effective date will be communicated separately by the committee.

About the National Payments Corporation of India (NPCI)

The National Payments Corporation of India (NPCI) serves as the primary umbrella body managing retail payment and settlement systems across India. Established jointly by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), NPCI functions as a “Not for Profit” entity dedicated to providing robust digital and physical payment infrastructure to the nation’s banking system.

Core Products & Solutions

NPCI has been central to driving financial inclusion and modernizing India’s transaction ecosystem through key initiatives, including: