New Delhi:- Following concerns and controversy over the proposed additional charges on payments made through UPI, the central government has taken a major decision to defer the Merchant Discount Rate (MDR) on selected commercial transactions until after Diwali.
In a statement, the National Payments Corporation of India (NPCI) said that, keeping the festive season in mind, the UPI and Services Steering Committee had postponed the implementation date of MDR on selected person-to-merchant transactions. The new date will be announced separately after Diwali. The rule was initially scheduled to come into effect on October 15, but it is now expected to be implemented from January.
What Was the New Rule?
It is worth noting that on September 15, NPCI had announced a 0.4 per cent fee on large commercial transactions exceeding Rs 2,000 made through UPI. The fee was capped at a maximum of Rs 300 per transaction for transactions worth Rs 75,000 or more.
