In short: The National Payments Corporation of India (NPCI) has postponed a proposed 0.4% merchant fee (merchant discount rate, or MDR) on select person-to-merchant UPI payments above ₹2,000. It was due to start on 15 October 2026. NPCI cited the festive season and said “the new implementation date will be notified separately”.
What was proposed
- Rate: 0.4% on eligible merchant payments above ₹2,000. On a ₹5,000 payment, that’s ₹20.
- Cap: reports put it at ₹300 per transaction.
- Who pays: the merchant. Reports said the fee cannot be passed on to customers, but NPCI hasn’t confirmed the final framework.
- Not affected: person-to-person transfers. Payments under ₹2,000 would also stay free.
Traders’ groups had pushed for a delay. Some reports suggest the rollout could move to January 2027, but no date has been announced.
What it means for you
Until a new date is notified, nothing changes. When it does start, it will mainly hit businesses with higher-value orders: a ₹2,500 hamper, a ₹4,000 saree or a ₹10,000 bulk order. Things to do now:
- Work out what share of your sales are UPI payments above ₹2,000.
- Check whether your prices leave room for a 0.4% cost.
- Compare it with what you already pay on cards and payment gateways, which is often around 2%. UPI will still be the cheapest way to get paid.
Related: Selling on WhatsApp with a catalogue and UPI payments
Sakhi Sangini News Desk · 31 October 2026. Facts are as reported on the dates shown; confirm with the official source before you act. General information, not legal, tax or financial advice.
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