Government Defers UPI Transaction Charges on Payments Over Rs 2,000 Until Post-Diwali
13 Oct 2026Updated 29 min ago1 source
The government has postponed the implementation of the Merchant Discount Rate on Unified Payments Interface transactions exceeding Rs 2,000. Originally scheduled for October 15, the rollout is deferred until after Diwali to prevent payment disruptions during the peak festive shopping season. The delay gives digital payment firms more time to prepare for the changes, which are expected to create new revenue streams.
NIKAN Intelligence
What happened
The government delayed the rollout of Merchant Discount Rate (MDR) charges for UPI transactions above Rs 2,000, which was originally scheduled to take effect on October 15.
Why it matters
The postponement prevents potential payment transaction failures and disruptions during the peak Diwali shopping season, while giving payment processors extra time to transition to the new revenue model.
What's next
Payment companies will continue technical and administrative preparations to implement the rate changes after the Diwali holidays.
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