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UPI MDR rollout may slip from 15 October to 1 January 2027 after retailer pushback

Latest update, : Sitharaman: stakeholders to decide when 0.4% UPI MDR starts, as 15 October rollout may slip to January 2027

UPI's merchant discount rate rollout may be deferred from October 15 to January 1, 2027, amid retailer pushback. The proposed 0.40% fee applies to eligible P2M transactions above ₹2,000, and a turnover exemption of up to ₹40 Lakh is under consideration.

Newer report , , Business Today : GST Council leaves rates unchanged, proposes 10-day refund acknowledgement; no UPI MDR discussion, says Sitharaman

Read next

  1. Goldman Sachs lifts Paytm target to Rs 2,070 from Rs 1,500, sees UPI MDR driving up to 40% EBITDA upgrades, , NDTV Profit
  2. Kerala textile dealers' body KTGA protests reported 0.4% UPI merchant fee due from 15 October, , Apparel Resources India

What we verified

Checked against the other reports of this story.

Why it matters to operators and investors

Run retail and distribution target valuations under four cases (15 October or 1 January 2027, with or without the ₹40 lakh turnover exemption), because the proposed 0.40% MDR could change payment-cost assumptions for larger merchants.

Updates

Each later report on this story, newest first. Earlier entries are never edited; a correction is a new entry.

  1. Read the update at Moneycontrol

    Sitharaman: stakeholders to decide when 0.4% UPI MDR starts, as 15 October rollout may slip to January 2027

On the record

Earlier Unified Payments Interface (UPI) reports on RetailIntel, newest first.

  1. : UPI MDR rollout set for 15 October may be deferred as traders' bodies seek a post-festive start
  2. : UPI MDR can't be passed on to shoppers, says Punjab & Sind Bank MD; customers pay only the posted price
  3. : 83% of merchants won't absorb 0.4% UPI MDR on payments above Rs 2,000 from October 15, LocalCircles survey finds
  4. : Zimbabwe in talks with NPCI International to adopt UPI as common payments rail, with talks could conclude by October 31

The numbers

Figures from Inc42

MDR cap per transaction: ₹300
Flat fee for specified categories above ₹2,000: ₹5
Estimated annual cost to FMCG distribution and retail: ₹7,000 Cr–₹9,000 Cr
Merchant transactions unaffected per Centre: 96%

The source

Source Read the source at Inc42

Filed

Confirmed by Times Now Business, BW Disrupt, Indian Express, Moneycontrol, The Hindu BusinessLine

First seen

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