UPI merchant discount rate rollout likely deferred to January 2027

UPI merchant discount rate rollout likely deferred to January 2027

The rollout of the new merchant discount rate (MDR) framework for Unified Payments Interface (UPI) transactions is likely to be deferred to 1 January 2027, instead of the earlier proposed 15 October 2026 date, to give merchants more time during the festive season, people familiar with the matter said. The framework itself is unchanged: a 0.4 per cent MDR on person to merchant UPI transactions above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 or more. The deferral comes after the Supreme Court, on 28 September 2026, refused to stay the Centre's decision to impose the charge.