UPI MDR New Date: When Will Merchant Charges Start?

Published: 3 October 2026 · Updated: 16 October 2026

Illustration of an Indian shopkeeper looking at a calendar beside a UPI QR code to represent the new UPI MDR start date

NPCI has not announced an exact new UPI MDR implementation date yet. On 13 October 2026, the UPI and Services Steering Committee said Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions would be implemented immediately after Diwali, on a date to be notified separately.

That means the previously announced 15 October 2026 start date did not take effect. If you are searching for the UPI MDR new date, UPI merchant charges start date or the new implementation date for the 0.4% MDR, the official answer as of 16 October is: the revised date has not yet been notified.

Current Status: 15 October is now the old scheduled date. NPCI has moved implementation to immediately after Diwali and will issue the exact date separately.

What Was the Original UPI MDR Start Date?

The Department of Financial Services FAQ published on 15 September 2026 originally stated that the finalized MDR framework and threshold structure would take effect from 15 October 2026. That was the date used throughout the initial government framework.

However, before that date arrived, NPCI issued a later timing update on 13 October. The newer announcement changed the rollout timing, so 15 October should now be treated as the previously announced implementation date, not the date on which the new MDR actually became operative.

When Will UPI MDR Charges Start Now?

The official wording is narrower than many headlines suggest. NPCI said the MDR on select P2M UPI transactions shall be implemented immediately post Diwali, with the actual date to be notified separately.

There is therefore no official calendar date that merchants should substitute for 15 October yet. A date mentioned in a news report, social-media post, bank message or search result should not be treated as the new implementation date unless it is supported by a fresh official NPCI or government notification.

Is UPI MDR Applicable From 15 October 2026?

No. The 13 October NPCI update deferred the rollout before the previously scheduled date. The new MDR framework should therefore not be treated as having started merely because 15 October has passed.

This distinction matters because the September framework still describes the intended rates and categories, but the October update changed when those provisions will begin to be implemented.

What Will Apply When the New Date Arrives?

Under the published September framework, the standard MDR is 0.4% on qualifying P2M UPI transactions above ₹2,000, with a ₹300 cap for transactions of ₹75,000 and above. The framework also contains separate treatment for small merchants and specified merchant categories.

The 13 October timing announcement did not publish a replacement rate, threshold or cap. It addressed the implementation timing. Until another official announcement changes the underlying framework, the published rates remain the reference framework for the future rollout rather than a charge that became active on 15 October.

For the current treatment of higher-value payments, see UPI Merchant Charges on Payments Above ₹2,000.

Are Customers Going to Pay a UPI Fee After the New Date?

No consumer transaction charge is introduced by this MDR framework. The Department of Financial Services FAQ says consumers can continue making UPI payments without cost, and P2P transfers remain free. MDR is a merchant-side payment acceptance charge for qualifying transactions under the framework.

Why Does the Exact New Date Matter?

For merchants, payment providers and businesses, the difference between an announced framework and an implemented framework is important. The rate can be known while the effective date is still pending. That is exactly the position after the 13 October announcement.

Until NPCI or the Government publishes the revised date, merchants should avoid assuming that a particular day after Diwali is automatically the start date. The site-wide status banner on this page will be updated when an official new date is issued.

UPI MDR New Date FAQs

Has NPCI Announced the New UPI MDR Date?

No exact date has been announced. NPCI has said implementation will be immediately after Diwali on a date to be notified separately.

Did UPI MDR Start on 15 October 2026?

No. The 15 October rollout was deferred by NPCI on 13 October.

Will UPI MDR Start Immediately After Diwali?

NPCI has used the words “immediately post Diwali,” but it also specifically says the date will be notified separately. The separate notification is therefore the date merchants should wait for.

Is January 2027 the Official UPI MDR Date?

No official NPCI announcement currently names January 2027 as the implementation date. See Is January 2027 the New UPI MDR Date? for the distinction between online speculation and the official position.

Official Position

The latest timing statement is NPCI's 13 October 2026 update, UPI MDR on Select Merchant Transactions Shall be Implemented Post Diwali. The underlying September framework is set out in the Department of Financial Services MDR FAQ.