UPI fee will not come into effect before Diwali as NPCI defers MDR rollout

In a major relief to UPI users, the decision to levy a Merchant Discount Rate of 0.4 per cent on transactions over Rs 2,000 has been deferred, with NPCI on Tuesday saying a new date for the implementation will be decided after Diwali.

According to the National Payments Corporation of India (NPCI) circular issued last month, a 0.4 per cent MDR was to be levied on Person-to-Merchant UPI payments above Rs 2,000 from October 15.