No MDR hike on UPI fee from October 15

In a major relief to UPI users, the decision to levy a 0.4 per cent Merchant Discount Rate (MDR) on transactions over Rs 2,000 was deferred on Tuesday, with the National Payments Corporation of India (NPCI) saying it will decide a new date after Diwali. It was originally scheduled to take effect from October 15.

“UPI and Services Steering Committee on Tuesday decided that, keeping in mind the festive season, MDR on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post Diwali on a date to be notified separately,” NPCI said in a statement.