The 22-member UPI steering committee meets today to decide on deferring the merchant discount rate. Industry experts expect the 0.4 per cent fee on transactions above ₹2,000 to get pushed to January 2027. Many bodies raised concerns about the levy, so officials said a final call is coming very soon.
Last month, the committee fixed the UPI MDR at 0.4 per cent, or 40 basis points, for transactions above ₹2,000
The 22-member UPI and services steering committee is expected to meet tomorrow to take a final call on whether to defer the merchant discount rate (MDR) on UPI transactions, sources said.
"The steering committee is meeting to take the final call on MDR and the decision is expected to be announced after it," sources added.
Industry sources said MDR is likely to be pushed to January 2027, as the festive season is around the corner and industry bodies have raised concerns about the levy at this time.
The panel comprises the Indian Banks' Association (IBA), the Payments Council of India (PCI), and representatives of banks, payment service providers (PSPs) and various associations.
Last month, the committee fixed the UPI MDR at 0.4 per cent, or 40 basis points, for transactions above ₹2,000. The charge was to come into effect from October 15, 2026.
MDR is the fee that merchants pay to banks for processing digital payments. The 0.4 per cent fee translates into ₹8 for every ₹2,000 spent, or ₹40 for every ₹10,000 paid using UPI.