NPCI
NPCI is moving to monetise UPI, with a 0.4% merchant discount rate on select transactions above ₹2,000, capped at ₹300, now deferred from 15 October to immediately after Diwali (Free Press Journal Business, 13 Oct). Merchants get temporary relief (Business Today, 13 Oct), and 96% of UPI transactions fall below the threshold (The Hindu BusinessLine, 24 Sept).
Latest moves
Our read of each move first, where we have one; what the report said is marked Reported.
Background
From 10 stories, the newest dated 13 Oct 2026. Summary written 13 Oct 2026.
NPCI is the body behind the proposed merchant discount rate (MDR) on UPI payments in India, and the MDR is the main subject of recent coverage about it. [1] source: Free Press Journal Business[2] source: ET Small Business
Show 3 more paragraphs and 10 sources
NPCI has addressed price-rise concerns by stating that the charge is paid by merchants, not consumers. [1] source: Free Press Journal Business An op-ed in BW Disrupt cites NPCI's FiMI model and IoT Payments with UPI as part of the next phase of payments. [3] source: BW Disrupt An ET BrandEquity opinion urges the launch of NPCI's Unified Agent Protocol. [4] source: ET BrandEquity
The proposed MDR is 0.4% on merchant UPI payments above Rs 2,000, capped at Rs 300 per transaction. [1] source: Free Press Journal Business It is scheduled to take effect on 15 October 2026. [5] source: Business Today The proposal also includes a flat Rs 5 charge for essential services and a 0.02 percent MDR for capital markets. [1] source: Free Press Journal Business Moneycontrol reported in October 2026 that NPCI had received requests to defer the rollout to January 2027, and payments stocks fell up to 7% on 8 October 2026. [6] source: Moneycontrol Inc42 reported that a turnover exemption of up to ₹40 Lakh is under consideration. [7] source: Inc42 NDTV Profit reported that NPCI is yet to decide after consulting stakeholders. [8] source: NDTV Profit The GST Council took no decision on the MDR in October 2026. [9] source: CNBC-TV18 An IIT-Bombay report urged cutting the MDR to 0.08% from 0.40%. [5] source: Business Today
RBI Governor Sanjay Malhotra said a small fee on UPI payments will not have a major impact on transaction volumes. [10] source: Indian Express UPI processed 23.66 billion transactions worth Rs 29.88 lakh crore in June 2026. [3] source: BW Disrupt Google Pay, Paytm and PhonePe are named in coverage of the MDR. [1] source: Free Press Journal Business
Sources
- Proposed UPI MDR of 0.4% on merchant payments above Rs 2,000 expected 15 October, may slip to 1 January 2027
- IIT Bombay report urges limiting NPCI's proposed 0.4% UPI MDR to merchants with turnover above Rs 50 crore
- IIT-Bombay report urges UPI MDR cut to 0.08% from 0.40% as merchant fee start date of 15 October nears
- UPI MDR deferral to January 2027 sought; MobiKwik, Paytm, Pine Labs shares slide up to 7%
- UPI MDR rollout may slip from 15 October to 1 January 2027 after retailer pushback
- UPI MDR rollout set for 15 October may be deferred as traders' bodies seek a post-festive start
- GST Council takes no call on UPI MDR; deferment not its decision to make, says Sitharaman
Stories that mention NPCI
5 stories
NPCI is named in these stories but is not their subject.
- Nomura initiates Paytm at Buy with Rs 2,250 target as NPCI defers UPI MDR framework until after Diwali
- GST Council may consider 18% GST on UPI merchant fees above ₹2,000
- UPI MDR can't be passed on to shoppers, says Punjab & Sind Bank MD; customers pay only the posted price
- Zimbabwe in talks with NPCI International to adopt UPI as common payments rail, with talks could conclude by October 31
- UPI volume dips 1.8% in September but stays above 24 billion transactions