UPI MDR rollout deferred to January 2027 after retailer pushback
The reintroduction of a merchant discount rate (MDR) on select UPI transactions has been deferred from October 15 to January 2027, Inc42 reported.
Earlier coverage noted retailer opposition to the 0.4% fee on transactions above ₹2,000, including a planned one-day strike that was later called off. The Supreme Court declined to stay the policy last week, leaving the fee structure in place while seeking the Centre’s response.
The deferral leaves the broader debate unresolved. UPI has operated without MDR for years, and the policy’s future could shape adoption among small merchants. The January deadline may offer a window for further adjustments—or renewed pushback.
Sources: inc42.com
“The deferral may reflect tensions in India’s digital payments ecosystem over cost-bearing policies and regulatory priorities.”
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