Important StoriesRBI to curb rupee volatility amid external pressures, says Finance Minister SitharamanUPI MDR rollout postponed until after Diwali; new date to be announcedIndia offers itself as a trusted partner to the world as global challenges have grown: ModiZoho says it cannot offer usual pay hikes to employees this year as AI disrupts costsNTPC seeks overseas buyers for green ammonia, low-carbon fuelsFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. UPI MDR rollout postponed until after Diwali; new date to be announced The decision follows industry opposition and a legal challenge, with the Supreme Court seeking explanations from NPCI, RBI and the Centre By Ashokamithran T Updated - October 13, 2026 at 06:20 PM.×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/upi-mdr-rollout-postponed-until-after-diwali-new-date-to-be-announced/article71579088.eceCopy FILE PHOTO: The National Payments Corporation of India has deferred the merchant discount rate rollout on select high-value UPI transactions until after Diwali. | Photo Credit: AMIT DAVE

The National Payments Corporation of India (NPCI) has deferred the rollout of the merchant discount rate (MDR) on high-value UPI transactions until after Diwali, according to a statement issued on October 13. The levy was initially scheduled to come into effect on October 15.

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

NPCI had announced the introduction of a 0.4 per cent MDR on UPI transactions above Rs 2,000, along with a sector-wise rate framework, on September 15. The move drew criticism from industry stakeholders, including Zerodha founder Nithin Kamath and the All India Mobile Retailers Association. Leader of the Opposition Rahul Gandhi and several other political leaders also opposed it. NPCI, the government and the Reserve Bank of India (RBI), however, maintained that the levy would have a limited impact on users, as it applied only to high-value transactions and involved a relatively small charge.

After reports that the rollout could be delayed, Finance Minister Nirmala Sitharaman clarified after the recently concluded GST Council meeting that NPCI and the Steering Committee would decide.

The postponement also comes against the backdrop of a writ petition filed by Supreme Court advocate Anjan Datta, seeking a stay on the MDR rollout because the process lacked transparency and raised constitutional concerns. While the Supreme Court declined to stay the implementation, it directed NPCI, the RBI and the Government of India to explain the legal basis for the MDR, noting that the government had stated in a brief affidavit that the charge was neither a tax nor a fee. The respondents have been asked to file their replies within four weeks.

The matter is next scheduled to be heard on November 2, 2026, less than a week before Diwali, which falls on November 8 this year.

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