MDR on UPI may now take effect in January 2027

The rollout of the merchant discount rate on UPI transactions has been postponed to January 2027. This decision follows requests from trade bodies concerned about potential impacts on festival season sales. The new fee structure was originally set to take effect on October 15, giving stakeholders only a month for preparations. The framework includes a 0.4% charge for transactions above Rs 2,000, but many transactions will remain fee-free.