Acknowledging traders request the Centre has agreed to delay the implementation of Merchant Discount Rate charges for a transaction above Rs 2000.
As per the press release of Tuesday, MDR charges have been pushed to the second week of November after Diwali.
“UPI and Services Steering Committee today (October 13) decided that, keeping in mind the festive season, MDR on select Person-to-Merchant (P2M) UPI transactions shall be implemented immediately post Diwali on a date to be notified separately,” NPCI said in a media statement.
Diwali, which will be celebrated across India on November 8, typically marks the peak of consumer spending in Asia’s third-largest economy, with shoppers splurging on cars, clothes and home appliances.
The delay will create a window for traders to upgrades their system to accommodate the charge rather than passing it onto the customer.
Earlier in September the UPI Steering committee NPCI dedicated a 0.4% MDR for transactions above Rs 2,000.
MDR is the fee charged to merchants for processing digital payments. The 0.4 percent fee translates into Rs 8 per Rs 2,000 spent or Rs 40 for every Rs 10,000 paid using UPI.
The proposed fee will end more than six years of zero-cost UPI payments.