Why Was UPI MDR Postponed Until After Diwali?
Published: 16 October 2026
NPCI says the UPI MDR rollout was postponed “keeping in mind the festive season.” That is the official reason given in its 13 October 2026 statement.
The UPI and Services Steering Committee moved implementation of Merchant Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions from the previously scheduled 15 October rollout to immediately after Diwali. NPCI also said the exact date would be notified separately.
What Reason Did NPCI Give for the Delay?
The official statement is brief. It says the Steering Committee decided, keeping in mind the festive season, that MDR on select P2M UPI transactions would be implemented immediately post Diwali.
That is the reason we can state as an official fact. Other explanations that may appear in commentary, industry reports or social-media discussions should not be presented as NPCI's reason unless an authoritative source confirms them.
Why Is the Festive-Season Timing Important?
The announcement itself does not provide a detailed economic explanation, so it would be speculation to add one on NPCI's behalf. What the statement clearly establishes is that the Committee chose not to begin the new merchant MDR framework during the festive period and instead shifted implementation to immediately after Diwali.
This is also why the old 15 October date is no longer current even though it still appears in the September FAQ and in older articles.
Was the UPI MDR Framework Cancelled?
No. NPCI did not announce cancellation. Its statement says the MDR shall be implemented immediately after Diwali at a date to be notified separately.
So the correct description is postponed, deferred or moved—not cancelled.
Did NPCI Change the 0.4% Rate?
The 13 October postponement statement does not announce a new rate. The September Department of Financial Services FAQ remains the published framework for the standard 0.4% MDR on qualifying P2M UPI transactions above ₹2,000, with a ₹300 cap at ₹75,000 and above.
The postponement therefore changes when implementation is expected to begin, not the published standard rate in that announcement.
Did the ₹2,000 Threshold Change?
No new threshold is given in the 13 October statement. The September FAQ says there is no impact on small-value P2M transactions up to ₹2,000 and describes the standard MDR for qualifying transactions above ₹2,000.
For the current status of payments over the threshold, see UPI Merchant Charges on Payments Above ₹2,000.
When Will the Delayed MDR Start?
NPCI has not yet supplied an exact replacement date. The official wording is “immediately post Diwali” and “at a date to be notified separately.”
That means merchants should wait for the separate official date notification rather than assume that a particular day after Diwali—or a date such as January 2027—is confirmed.
See UPI MDR New Date: When Will Merchant Charges Start? for the latest date status.
Does the Delay Change Anything for UPI Customers?
The official MDR framework says consumers continue to use UPI without transaction charges. P2P transactions also remain free. The October postponement does not introduce a customer fee.
What Should We Watch for Next?
The next important development will be an official communication naming the revised implementation date or changing another part of the framework. Until that happens, the safest summary is:
The 15 October rollout was deferred; implementation is planned immediately after Diwali; exact date awaited.
Why UPI MDR Was Postponed FAQs
Was UPI MDR Postponed Because of Diwali?
NPCI says the decision was taken keeping in mind the festive season and moved implementation to immediately after Diwali.
Did Merchant Protests Officially Cause the Postponement?
The 13 October NPCI statement does not say that. Unless an official source gives a broader explanation, the festive-season wording is the reason that can be attributed directly to NPCI.
Is There a New Date Yet?
No exact date has been notified. NPCI says the date will be announced separately.
Official Source
See the 13 October 2026 NPCI statement: UPI MDR on Select Merchant Transactions Shall be Implemented Post Diwali.