The implementation of a 0.4% Merchant Discount Rate (MDR) on UPI transactions exceeding Rs. 2,000 is likely to be postponed until after the festive season, Namasthe Telangana reported.
This MDR policy was originally scheduled to come into effect from October 15. However, NPCI is considering implementing it after the festive season, according to Namasthe Telangana.
Namasthe Telangana stated that Moneycontrol reported the National Payments Corporation of India (NPCI) is examining the possibility of deferring the MDR implementation until January of next year.
Moneycontrol's report, cited by Namasthe Telangana, indicated that requests for this postponement came from business associations, fintech, and payment service providers. These requests were made due to concerns regarding various MDR rates, their applicability to different transactions, and the readiness of businesses for the new system, according to official sources.
Namasthe Telangana further mentioned that Moneycontrol reported NPCI is expected to make a decision within the next two days, as discussions are ongoing with the Ministry of Finance.
This potential postponement offers some relief to businesses and consumers in Andhra Pradesh and Telangana during the festive season, allowing digital transactions to continue without the immediate burden of new charges.