UPI charges may be delayed by two months:Payments will stay free during festive season; rule was supposed to take effect from October 15

The rule imposing charges on UPI payments may be deferred for now. The Centre was set to impose a 0.4% charge on UPI payments above ₹2,000 from 15 October, but is considering implementing it from 1 January 2027. However, there will be no changes to the new rules and charges that have been finalised. According to media reports, merchants and payment companies may be given an exemption during the festive season. This means UPI transactions will remain free as before. Final decision may come soon According to reports, the government is considering postponing the date for implementing the 0.4% merchant fee so that shopkeepers do not face an additional burden during the festive season and online payments continue without disruption. The government’s official decision on the proposal could be announced within the next few days. Shares of companies such as Paytm and MobiKwik fall News of the postponement of the merchant charge on UPI had a direct impact on the shares of fintech companies listed on the stock market. 1. Paytm sees sharp fall During trading, Paytm’s share fell as much as 10% at one point, reaching a low of ₹1,561. However, it recovered slightly by the close of trading and ended at ₹1,640, down 5.42%. 2. MobiKwik, Pine Labs and other fintech shares also fall New rules on UPI MDR charges and their impact on merchants What is the Merchant Discount Rate? Merchant Discount Rate, or MDR, is the fee that a trader or shopkeeper pays to banks and payment service providers for using debit/credit cards or digital payment facilities such as point-of-sale machines or payment gateways. This fee is charged to cover the cost of operating digital infrastructure and transfer networks. The merchant has to pay this charge, not the customer. Retailers’ organisations’ argument against UPI charges