Mumbai [Maharashtra]: The National Payments Corporation of India (NPCI) has postponed the implementation of the Merchant Discount Rate (MDR) on select Person-to-Merchant UPI transactions. Earlier, NPCI had announced that the rate would come into effect from today. The implementation will now take place after Diwali.
In a social media post, National Payments Corporation of India said that UPI and Services Steering Committee decided that, keeping in mind the festive season, MDR on select Person-to-Merchant UPI transactions will be implemented immediately post Diwali. It said, the date will be notified separately.
All person-to-person UPI transactions will remain free regardless of amount. The MDR charges will apply only to person-to-merchant transactions exceeding two thousand rupees. Around 96% of person-to-merchant UPI transactions will remain unaffected. Small merchants, including street vendors, receiving up to one lakh rupees per month through UPI QR codes under the Person-to-Person-Merchant category will continue to enjoy zero MDR on all transactions.