The National Payments Corporation of India (NPCI) has reportedly postponed the proposed Merchant Discount Rate (MDR) charges on certain UPI transactions. The decision comes after concerns from traders about the additional financial burden, especially during the upcoming festive season.In September, a committee proposed a 0.4% MDR charge on person-to-merchant (P2M) transactions above ₹2,000, subject to a maximum of ₹300. A flat ₹5 charge was also proposed for certain sectors, including railways, telecom, insurance, fuel and agricultural inputs.However, implementing the charges during the Dasara and Diwali shopping season could affect businesses. NPCI has reportedly deferred the final decision until after the festive rush, potentially the second week of November. Until then, the proposed additional charges will not be implemented, offering temporary relief to merchants.
