Overview
- Reports say the National Payments Corporation of India and finance officials are considering moving the MDR start date from October 15 to January 1, 2027, and a formal announcement is expected soon.
- The MDR framework itself is final: a 0.4% charge on person‑to‑merchant UPI payments above Rs 2,000 with a Rs 300 cap and a flat Rs 5 fee for specified categories.
- The Department of Financial Services has insisted consumers will not be charged and that merchants are not permitted to pass the MDR on to buyers.
- Merchant associations, fintechs and payments firms have formally asked for more time, citing the festive season, system readiness problems and confusion over how category‑specific fees will be applied.
- The reports of a possible delay already hit payment stocks and will reshape when payment firms can start earning transaction fees and how small, thin‑margin merchants absorb processing costs.