Giving a big relief to the businessmen during the festive season, NPCI has postponed the decision of implementing MDR on UPI till Diwali, but no fixed date has been given for it yet.

NPCI took a big decision

The MDR rule on UPI is scheduled to come into effect after Diwali, but NPCI has not yet announced a date. It is believed that this decision may be postponed again, as merchant organizations are demanding that it be implemented by January 1, 2027, to allow time to develop a framework for implementation after Diwali.

NPCI Managing Director and Chief Executive Officer Dilip Asbe previously told Mint that a new implementation date would be announced soon. He said, "We have postponed it until after Diwali. The final date will be announced soon." Despite this decision by NPCI, there is still resentment among businesses.

What are the businessmen angry about?

NPCI decided to postpone its decision until Diwali because shopping is at its peak during festivals like Dhanteras, Diwali, and Chhath. This is the time of year when people spend a lot of money on everything from clothing to gadgets. During this time, digital transactions in the country reach record levels.

According to NPCI, implementing a new charging system during the busy shopping season could negatively impact market sentiment and spending. This is why representatives of major trade organizations like the Confederation of All India Traders (CAIT) met with Finance Minister Nirmala Sitharaman and strongly opposed the charge. They argued that the MDR imposed on UPI during the festive season would reduce their profits.

Why is there a demand to implement it from January 2027?

Businesses want the government to implement it in January 2027 instead of November. This is because the wedding season immediately follows Diwali. Furthermore, shopping also increases during the winter season . People also purchase a variety of items, from home decor to food and beverages, for Christmas and New Year's. Expenses are also incurred on catering and venue bookings for parties and picnics. Therefore, businesses argue that implementing it immediately after Diwali will impact digital payments.