# Festive Season May Delay UPI MDR Charges Beyond Mid October As Nirmala Sitharaman Clarifies Stance > Discussions suggest merchant discount rate charges on select UPI transactions could be pushed to 1 January 2027, with Finance Minister Nirmala Sitharaman stating the decision rests with relevant authorities. **Type:** article · **Category:** Business · **Published:** 2026-10-08 · **Source:** TrendKia **Canonical:** https://trendkia.com/en/business/tyohari-sijana-men-tala-sakata-hai-upi-mdr-charja-vitta-mntri-nirmala-sitharaman-ne-di-ahama-janakari-44828 · **Language:** English **Tags:** UPI, MDR, NPCI, Nirmala Sitharaman, Digital Payments, Festive Season, Merchant Charges With consumer spending picking up ahead of major celebrations across the country, scrutiny around digital transaction pricing has returned to center stage. Following a GST Council gathering, Union Finance Minister Nirmala Sitharaman addressed inquiries regarding whether the forum reviewed the proposed rollout of merchant discount rate charges on UPI payments. Nirmala Sitharaman stated that the gathering was strictly focused on the GST Council agenda and that MDR was not discussed during the proceedings, adding that the matter will be handled by the specific bodies responsible for governing it. ## Deliberations over Postponing Implementation to 1 January 2027 Amid strong demand from merchant communities, authorities are considering shifting the tentative launch date from 15 October to 1 January 2027, though no final decree has been made. A dedicated session was held on 7 October by the UPI and service steering panel operating under the oversight of NPCI to examine appropriate scheduling. The period spanning October through December brings elevated shopping volumes due to Diwali, Chhath, and Christmas, driving a massive surge in everyday digital checkout payments. Business owners maintain that introducing fresh transaction levies right in the middle of festive sales could complicate commerce, making an extension into early 2027 a more viable transition window. ## Key Highlights from the 7 October Panel Meeting The 7 October consultation convened by NPCI reviewed the foundational framework planned for MDR alongside operational timing constraints. Members deliberated on the practical mechanics of the charge, but the assembly concluded without a conclusive decision to formally scrap the 15 October target in favor of 1 January. As a result, the delay remains an active proposal under evaluation. The final operational clarity will only emerge once NPCI and affiliated stakeholders arrive at a collective resolution. ## Proposed MDR Structure and Applicable Transaction Limits The merchant discount rate represents the processing fee deducted across the payment network from retailers receiving digital funds. Under the proposed blueprint, an MDR levy of 0.40 percent will apply to specific person-to-merchant UPI payments exceeding the value of 2,000 rupees. To prevent excessive deductions on higher tickets, the rules establish a hard ceiling capped at 300 rupees for transactions standing at or above 75,000 rupees. The mechanism is structured so that customers do not face direct out-of-pocket deductions at the register, keeping the operational cost confined to merchants using the payment infrastructure. ## What this means for you The potential postponement of UPI transaction fees ensures uninterrupted and frictionless digital checkouts for retailers and consumers throughout the festive shopping peak. - **For Retailers:** Avoiding the 0.40 percent charge from 15 October protects festive profit margins from sudden cost spikes. Store owners can continue promoting digital payments across counter checkouts without immediate fee burdens. - **For Consumers:** The MDR structure does not levy charges directly on end customers making purchases. Shoppers can continue scanning QR codes and paying via UPI without incurring any extra checkout fees. - **For High-Value Transactions:** The upcoming framework is designed exclusively for merchant payments that exceed 2,000 rupees. Everyday small-value transactions will remain unaffected regardless of future regulatory implementation. - **On Future Deadlines:** While 1 January 2027 is emerging as the potential start date, the schedule remains subject to formal confirmation. Businesses must wait for official notifications from NPCI before making system changes. ## Why this happened The move to reconsider the rollout timing arises from merchants' apprehensions regarding elevated payment volumes during the festive retail rush. Regulatory discussions have shifted to determining a less disruptive timeline following steering committee deliberations. - **Festive Season Pressures:** Peak consumer retail runs between October and December across Diwali, Chhath, and Christmas, magnifying transaction volumes. Traders requested deferred enforcement to avoid operational friction during their busiest commercial quarter. - **Panel Consultations:** On 7 October, the NPCI-led steering committee evaluated operational hurdles and implementation timelines. While exploring 1 January 2027 as a suitable window, the body kept the proposal open pending a conclusive decision. - **Jurisdictional Clarification:** The Union Finance Minister clarified that MDR decisions fall outside the mandate of the GST Council. Consequently, official implementation parameters depend entirely on future formal announcements from NPCI and banking partners. ## Questions & Answers ### 1. Did the GST Council meeting discuss UPI MDR charges? No, Finance Minister Nirmala Sitharaman stated that MDR was not discussed as it fell outside the GST Council's agenda. ### 2. What is the new proposed timeline for UPI MDR implementation? Discussions are underway to push the rollout from 15 October to a tentative date of 1 January 2027, pending final confirmation. ### 3. What transpired in the NPCI meeting on 7 October? The steering committee discussed the timing and framework of the fee, but did not finalize an official postponement. ### 4. What are the proposed MDR rate and cap limits? A 0.40 percent fee is proposed on select merchant payments above 2,000 rupees, with a maximum cap of 300 rupees for sums at or above 75,000 rupees. ### 5. Will consumers be charged extra for paying through UPI? No, the charge applies to merchant entities accepting digital payments rather than being levied directly onto consumers. --- _TrendKia — Har trend, sabse pehle.. Machine-readable view; canonical HTML at the URL above._