UPI charges could be deferred until January 1; major news regarding online payments

The implementation date for the new Merchant Discount Rate (MDR) framework for UPI transactions is likely to be pushed to January 1, 2027. This decision may be taken to provide merchants and the digital payment ecosystem with sufficient time to prepare during the festive season.

Even under the new rules, a zero-MDR policy will continue to apply to small merchants and person-to-person transactions. RBI Governor Sanjay Malhotra has also clarified that a very nominal fee is not expected to have a significant impact on the volume of digital transactions.