NEW DELHI, OCT 13: The Central Government on Tuesday decided to postpone the implementation of the proposed 0.4 per cent Merchant Discount Rate on select merchant UPI payments until after the festive season. Official communications affirmed that the levy, which was originally scheduled to take effect on October 15, is now expected to be deferred until early next year. Authorities maintained that the postponement aims to cushion commercial enterprises and small retailers during peak seasonal business activity.
Representatives of the National Payments Corporation of India stated that the UPI and Services Steering Committee reached the decision considering the high volume of commercial transactions during Diwali.
Officials affirmed that person-to-person transfers and low-value transactions below two thousand rupees will remain completely free of charges. Government sources declared that small merchants accounting for the majority of daily transaction volumes will continue to be fully exempted from the fee structure.
The decision comes following representations from business groups and administrative reviews regarding operational readiness. Government representatives maintained that the nominal fee structure remains significantly lower than standard debit and credit card processing charges. Financial authorities declared that the revenue generated from the rate structure will support digital banking infrastructure, system security, and operational expansion once the revised implementation dates are formally notified.
