UPI MDR fee implementation new date: How long do transactions over ₹2,000 remain free? What we know from NPCI statement

MDR charges on select Person-to-Merchant UPI transactions above ₹2,000 will not start on 15 October as planned. Here's what we know about the new date.

The UPI and Services Steering Committee took a key decision today. On 13 October, it kept the festive season in mind while deciding on the implementation of the Merchant Discount Rate (MDR).

The MDR was supposed to be implemented starting from 15 October. It will apply to select Person-to-Merchant (P2M) UPI transactions. However, the date of its implementation has been postponed, the National Payments Corporation of India (NPCI) informed on Tuesday.

"UPI and Services Steering Committee today decided that, keeping in mind the festive season, Merchant Discount Rate (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

The MDR charges will now be implemented immediately after Diwali. The exact date will be notified separately.

Diwali 2026 will be celebrated on 8 November. If the promise of ‘immediate’ implementation stays true, MDR charges will likely start on 9 November. This means that, for the next 20 days or so, UPI transactions above ₹2,000 will remain free as usual.

(This is a developing story. Check back for more details.)

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