In a major relief for consumers and retail traders amid the peak festive shopping season, the implementation of the new Unified Payments Interface (UPI) Merchant Discount Rate (MDR) rules—originally slated to take effect from October 15, 2026—has been deferred until after Diwali. The National Payments Corporation of India (NPCI), in consultation with the Ministry of Finance, took this significant decision following widespread representations and concerns raised by merchant associations regarding the rollout timing during the busy festival period.

Trade bodies had earlier requested a deferment, pointing out that introducing new transaction structures right in the middle of peak festive sales could create operational hurdles for small businesses. Acknowledging these feedback inputs, NPCI announced that the revised framework for select Person-to-Merchant (P2M) transactions will now be implemented immediately post-Diwali. This extension ensures that digital transactions across the country continue smoothly and seamlessly without adding any regulatory or operational complications for shoppers and store owners during the celebrations.